Invisible Trade: insurance: functions, classification. Lloyds Underwriters. (Environment, 1.3; L of B, Unit 23)

Every firm insures itself against loss or damage to its property. Blanket insurance means insurance which covers everything. The premium is a percentage of the total value of goods.

The underwriters employ adjusters, assessing the loss or damage. This sum usually less than the full insured value of the property.

Insurance is protection against possible financial losses. Individuals, companies and organizations can make regular payments, called premiums, to an insurance company which accepts the risk (or possibility) of loss. When you buy insurance you make a contract, called a policy, with the insurance company – also known as the insurer. The contract promises that the company will pay you if you suffer loss of or damage to property, or sickness or personal injury.

Blanket insurance means insurance which covers everything, a comprehensive policy.

Often companies and persons insures the goods or property against almost anything that could happen. But most insurance companies put in some exceptions, like war or Act of God.

When an accident or robbery takes place the injured party puts in a claim to the insurance company. If the insurance company agrees to pay it is said to meet the claim.

First you take out a policy, then you put in a claim, and the insurance company, you hope, agrees to meet the claim.

The largest insurance market in the world is Lloyd’s of London. This is an association of people called underwriters, who guarantee to indemnify other people’s possible losses. Lloyd’s spreads risks among a number of syndicates: groups of wealthy individuals, commonly known as «names». These people can earn a lot of money from insurance premiums if the clients never claim for compensation, but they also have unlimited liability or responsibility for losses.

International Trade: Breaking into the new market. (Environment, 1.3; L of B, Unit 1,15)

International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events.

Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries.

International trade unites local markets and national markets.

Breaking into a new market involves months, sometimes years, of planning. It involves a lot of research, time and energy. Like anything in business, preparation and homework can prove the difference between success and failure.

Considering a new market
When deciding whether to break into a new market, it is important to consider the reasons you want the business to grow and, more importantly, whether your business is ready to grow. You can do this by simply reviewing and updating your business plan. Not only will this help you determine whether you are ready to break into a new market, it will help you formulate a plan to finance the growth.

You should include the following in your plan:
1. Market Research
Be sure to include:
- A SWOT analysis;
- Evidence there is room in the market for your product or service;
- A potential customer base;
- A study of competitors – who they are, their market share and offerings.
2. Financial Analysis
Analyse your financials to ensure your business can sustain a move into a new market. You should ensure you have the cashflow and projected income to fund the time and cost of breaking into a new market.
3. Marketing to a new market
Once you have decided to break into a new market, the next step is telling everyone about it. That does not only mean your potential and existing customers. It is important to also involve management and staff, so everyone knows what is going on.

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