Answer to Question #222630 in Management for Noor

Question

a)    An existing cost system lacks the essential aspects of cost control. List the main matters to be introduced to make good the system’s deficiencies.                     [10 Marks]

b)     Discuss the Resources required to manage insurance products                [8 Marks]

Answer 1

^{Question a1 -Planning the Project Budget-This budget will be used to aid you with all payments and expenditures that you will incur over the project's life cycle. As a result, creating this budget necessitates extensive study and critical thought.2 - Keeping a Track of Costs-It is just as vital to keep track of all actual expenditures as it is to use any other approach. It is preferable to create a time-based budget in this case. This will assist you in keeping track of a project's budget throughout its many stages. Actual expenses will have to be compared against the budget's set-aside objectives on a regular basis. These goals might be set on a monthly, weekly, or even yearly basis if the project is expected to last a long time.3 - Effective Time Management The reason for this is because if you fail to fulfill project deadlines, the cost of your project will continue to rise; the longer the project drags on, the greater the costs will be, thus causing the budget to be surpassed.4 - Project Change Control-Change control systems are required to account for any potential changes that may occur over the project's duration.5 - Use of Earned Value-Similarly, using the accounting approach known as 'Earned Worth' to determine the value of the work that has been completed thus far is highly beneficial.}

Question b

1.     Pricing and actuarial analysis- For an insurance system to be successful, the management must anticipate future claims with a fair degree of accuracy.

2.     Marketing- Micro insurance marketing necessitates extensive employee training since it entails more than just selling policies. Successful insurance marketing also informs potential customers of the product's possible advantages and costs and ensures that anybody who buys it understands how to utilize it.

3.     Underwriting- Underwriting is the process of determining whether or not an insurance policy should cover an individual.

4.     Management of investments- Managing the investment of premiums collected from policyholders is critical to any insurance plan's financial viability.