Abc of Insurance

Part I: The ABC of Insurance

Insurance is a company that offers services to protect your assets, they are sometimes complex language which we all need to know to understand what we are hiring and use it as best as possible.

Here are the most common concepts that sometimes do not know and can complicate the use of a service as useful as insurance.

An insurance is a contract whereby an insurer undertakes, by charging a premium to compensate the damage caused to another person or property, or to satisfy a capital, income or other benefits agreed. All of the above depending on the type of insurance has been hired.

AGREEMENT AND POLICY

Contract of insurance

The insurance contract is the covenant or agreement between two or more people requires the fulfillment of certain actions, for example, offer a service or pay compensation.

Through the insurance contract insurers undertake to compensate for damage if an event specified in the contract, and you pay a premium to be protected.

POLICY

The document (contract) reflecting the general rules, particular or special.

PRIMA

The premium can be known as the cost of insurance, and this is linked to certain characteristics that determine how much insurance will cost. Depending on the amount you pay for your premium will be the coverage you will receive.

Insurance companies consider 5 things to determine the value of the premium:

Level of Risk: This refers to the number of times that has happened and suddenly some kind of damage that have been generated by it (eg how many earthquakes have occurred in Mexico in the history and damage).

Statistics: This refers to how often an accident happens and average severity (ie on average how many cars of any brand were stolen last month).

Probability: this means how likely an event happens (eg a hurricane in Acapulco is somewhat likely).

Mortality Table: Number of deaths by age, occupation and gender (eg a man working in a mine is more likely to have an accident, one who works in an office).

In the first part of ABC insurance, saw the terms of insurance policy and premium. These three concepts are fundamental for when purchasing an insurance policy and pay a signature bonus. Remember not to sign your policy if you do not understand perfectly the benefits and coverage you will receive from your insurance.

Do not miss the next part of the ABC of insurance, and we will talk over these issues.

World Bank cut its global growth prospects for the eurozone

Advanced countries will grow by 1.4% and 5.4% emerging in 2012, which means a reduction of 1.3 points forecast and 0.8 points respectively.

Alert in his report on the danger of the crisis and reduced demand spread to emerging countries.

"The escalation of the crisis will leave no one unscathed," he says, recommending caution.

The World Bank (WB) on Tuesday revised downward the outlook for global growth to 2.5% by 2012 and 3.1 in 2013, dragged down by weakening the euro area and the slowdown in emerging economies, reported Tuesday multilateral organization.

The advanced countries will grow by 1.4% and emerging 5.4% in 2012, which means a reduction of 1.3 points and forecasts 0.8 points, respectively, as provided in the data provided the last year. In its latest estimates, in June 2011, the WB forecast the world economy by 3.6% for both years .

"The world economy has entered a difficult phase characterized by significant downside risks and fragility," the WB.

The great obstacle to the global economy is the situation in the euro area , where the financial uncertainty and the intensification of the fiscal crisis will enter a recession this year and is projected a negative growth of 0.3% for the European region.

However, the report notes that the recent measures taken in Europe, such as strengthening the Retirement Fund or progress toward fiscal unit in the euro area have reduced the pressure on the sovereign debt of countries like Greece, Italy, Spain or France.

Alert contagion to emerging

Nevertheless, the World Bank in its report warning about the danger of the crisis financial and demand reduction in the advanced economies are extended to the emerging countries , by ensuring the global economy could slip into a recession, "as or greater than that of 2008/09 ".

Therefore, the World Bank economists recommend to developing countries , in a scenario of declining capital flows and lower prices of raw materials, prepared with prudent macroeconomic policies.

The Bank recommends caution to emerging

" The escalation of the crisis will leave no one unscathed . growth rates in developed countries could drop as much or more than in 2008. We can not overemphasize the importance of contingency plans, "said Andrew Burns, head of the Department Macroeconomics and author of the report, told a telephone news.

Burns noted that capital flows to emerging countries has fallen by almost half in 2011 and that some of the engines of the global economy such as Russia, Brazil and India have slowed their growth as a result of domestic settings.

For the WB, the main risk is given because, unlike in the 2008 crisis, both advanced and emerging countries "have less fiscal space to provide a counter-cyclical response or to provide the same level of support troubled financial institutions. "

"Uncertainties and Vulnerabilities"

The report, entitled "Uncertainties and vulnerabilities," said the slow growth also affects international trade , with exports declining global following since 2010.

In 2010, world exports of goods and services grew 12.4%, but in 2011 recorded an increase of 6.6% and in 2012 is expected to make 4.7%.

Slow growth also affects international trade

Also, global prices of commodities have fallen 10.2% since the beginning of 2011 records and agricultural products 19%, which has direct implications for exporting countries, they can see their income reduced by about 4% of GDP.

The head of the Analysis Group of the World Bank, Hans Timmer , said that developing countries "should find advance funding for their budget deficits, prioritize spending on social safety nets and infrastructure stress testing and submit their banking institutions."

Finally, another factor that adds uncertainty to the global situation are political tensions in the Middle East that could disrupt international oil supplies, the report said.

On the positive side, the multilateral agency emphasizes the strengthening of growth in the U.S. and Japan since the intensification of the uncertainty in August 2011 but warned of challenges in both countries over the medium term because of high deficits and debt levels.

Expectations for 2012 from the Spanish businessmen are below the European average

According to a report in late 2011 of the European Chambers of Commerce.

Only exports have a positive outlook, so that employers will turn in foreign markets.

In the case of employment, employers in all regions will choose to continue adjusting the templates.

Castilla-La Mancha is the community that provides more settings followed by La Rioja, Aragon, Andalusia, Cantabria, Navarre, Galicia and the Canary Islands

The expectations of the Spanish business in 2012 are located below the European average in all regions while in the whole of Spain is expected to stagnate in the turnover.

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These findings are from a report prepared in late 2011 by the Chambers of Commerce in Europe from 68,916 employers, of which 6,436 are Spanish.

Only exports have a positive outlook to the weakness of domestic demand so it seems that this year the Spanish businessmen will turn in foreign markets.

According to the report, this is the only variable in which the regions predict a growth higher than their European counterparts.

For Communities

Extremadura is the community where exports experience a higher growth , ahead of Castile and Leon, Valencia and Murcia, while at the opposite end and with little variation, but not deficits, Andalusia and Aragon are located.

In contrast, the sign negative will be the majority in domestic sales and especially unfavorable in the case of communities of Cantabria, Castilla-La Mancha, Andalusia, Navarre, Aragon and Madrid.

Moderate growth in the industry

As the number of businesses , all autonomies are located below the European average although some regions provide positive results, for instance, Extremadura, Valencia, Asturias, Basque Country Canary.

Negative business figures are especially critical in Cantabria , well above the Balearic Islands, Castilla-La Mancha and Andalusia, three similar but with negative balances.

The study also shows that business expectations point to a moderate growth in the industry , stagnation in services and maintenance in the recruitment of construction.

The report elaborates on the job and anticipates that there will be no changes in its evolution and also in investment. In both variables, the Chambers of Commerce forecast adjustments similar to the previous year.

Reduced investment and templates

In fact, in all communities, the report predicts a maintenance of the reduction in investment but stresses that in some communities such as Madrid, Balearic Islands, Asturias and Galicia employers predict this variable settings than those made in 2011.

In the case of employment, employers in all regions appear to be decanted for further adjusting the templates while forecasts anticipate a cut of the same intensity as last year.

In this section the Spanish forecasts are below the European average in all but eight of autonomy they anticipate adjustments harder than the national average.

Castilla-La Mancha community will be providing further adjustments followed by La Rioja, Aragon, Andalusia, Cantabria, Navarre, Galicia and the Canary Islands, all with balances below the Spanish average.

The job cuts lower , but still higher than other European countries, would correspond with the regions of Catalonia, Asturias and Madrid .

Eviction social drama starring the economic crisis

Only in 2011 more than 40,000 families have lost their homes.

This measure is a last resort to banks in cases of default.

Some of the measures to mitigate are mortgage refinancing or deferral of fees.

The crisis and rising unemployment have caused excessive only in 2011 more than 40,000 families have lost their homes in an eviction , a tragedy for those affected that banks left as a last resort in case of default.

Faced with this serious social problem that is increasing, the financial stresses that are already taking steps to mitigate , as the refinancing of mortgages, easing or deferral of fees or a moratorium on principal payments, among others.

The Government has proposed that households with payment difficulties may continue to occupy the property "a reasonable time" everything possible to avoid reaching the foreclosure , a measure that is not positive either for customers who lose their housing or for entities that increase their exposure to "brick" and add to its portfolio a new real estate asset to be provisioned.

The Executive presented this week a program of measures to reduce the impact of the evictions in groups at risk of social exclusion, complete with a code of good practice to adopt a voluntary institutions.

These proposals include the possibility that families who are in the "threshold of exclusion", having all its members are unemployed and have exhausted their unemployment benefits can pay off your debt with the bank providing your home , it known as "payment in kind."

In addition, the Government has proposed that families who are in the above situation can also be saved from eviction, whereas calls because they allow a grace period so that, for an embargo, those affected can continue to occupy the property "a time time " of at least two years.

Banks defend their predisposition

Institutions argue that long fighting and the drama seeking social solutions for customers.

The Banco Santander announced in 2011 a capital moratorium of three years from August to alleviate the situation of clients with objective causes of economic problems, such as being unemployed or have suffered a drop in income of more than 25% and having temporary difficulties in paying the mortgages of residence.

It also offers the possibility of lengthening the maturity of the credit to offset the grace period without changing the financial terms of the loan, or during the grace period, or the end of it.

One consultant stated in a study that could lead foreclosed mortgages more expensive for the few measures that have been received in the last six months 8,000 families, according to the entity. The amount of such mortgages affected reaches 1,300 million euros. In addition, since 2008, Santander has 4,000 deals refinanced mortgage by 4,200 million.

BBVA also explained later in the year that more than 40,000 families have been able to maintain their homes thanks to the plans undertaken by the entity. According to data from the end of the year, BBVA has helped about 108,000 families, of which 45,000 are for mortgages.

Among other measures, BBVA can defer mortgage payments for two to add them to the outstanding loan amount with a maximum of ten, during the life of the loan, defer up to 30% capital at maturity of the operation or increase the term to 40 years of the mortgage.

Bankia been relaxed since 2009 the credit terms to 100,000 customers with payment difficulties , of which 50% of these operations are hipotecas.Además, 85% of customers who traded "get a final solution and avoid defaulting "said the entity.

For entities is best to reach agreements with customers who stay with their homes and now that the recent financial reform has tightened supplies estate.

In this regard, a study by consultancy Oliver Wyman warns that the " payment in kind ", which involves paying off the debt with the delivery of housing, could result in increased cost of mortgages by higher funding costs and a decline in the granting of credits.

3.95 euros to laugh at the crisis in Portugal

It is just one example of how to begin to take the bad economic situation any employer (in this case trade) in Portugal.

Protest songs, TV commercials ... everything goes to satirise the crisis in the country Luso.

Political ridiculed, Merkel, Sarkozy and the 'troika' have featured in the carnival this week.

The harsh austerity measures implemented in Portugal in return for foreign aid are increasingly answered by its citizens, who now boast of irony to show their rejection.

The image of the country remains far from that of Greece , where the harshness of the cuts has led to violent confrontations between police and protesters, although the tone of the protests has also grown in Portugal as the situation worsened.

Receiving a tip they call salary (...) I want tighten the belt and pants and I have Luso more sarcastic side came out in the carnivals of the week ending, which has become for the first time shape the 'troika' of lending institutions to rescue Portugal, EU, European Central Bank (ECB) and International Monetary Fund (IMF). Caricatures of Merkel and Sarkozy riding a Europe aimlessly, spokesmen for the 'troika' with the scepter of command in hand, and several local politicians ridiculed, were just some of the carnival references to a crisis that has put the country in recession and with unemployment historically high: 14%.

But the signs that show this tendency to sarcasm are more numerous.

The protest songs with humor, the resurgence of the satirical character Zé Povinho and the finger (either directed to the new labor reform or the rating agency Moody's) or TV ads that make fun of the unfortunate statements its politicians, reflect how the Portuguese answer to one of the worst moments in recent history.

Neither has been left out of this current one restaurant , which compelled by circumstances to offer lower prices launched the 'Menu Merkel', the 'Menu Sarkozy' or even 'Menu IMF', from 3.95 euros.

"So many years studying to finish unemployed, or a bad job and underpaid. Receive a tip they call salary (...) I want to tighten the belt or pants I have , "he sings Boss AC , a Portuguese rapper of Cape Verdean origin in a video that takes more than a million hits on YouTube in two months.

Your letter shows the impact of multiple and severe adjustments in the average citizen, who already pay more than before by the state health , for using public transport or buy a car.

"That side of irony used in the protests in Portugal is an interesting, corrosive, and already in the past was very visible," explains Elisio Pond, sociologist and professor at Coimbra University who has studied the relationship between social differences and conflict. The "resignation" that sometimes seems to mark the character of the Portuguese is derived, according to Pond, Salazar's dictatorship, as in other historical periods there were riots radical and violent episodes.

So pacifism linked the protests to the success of the Revolution of April 25, 1974, which led the country to democracy? "It is true that the answer is different from that of Greece, where the agitation seems more chaotic, also by the increased presence of radical ideologies. Society Lusa shows, like other peoples, a great capacity for acceptance and sacrifice , and do not choose violence easily. But when it reaches its maximum limit, the answer may be unexpected, "says the sociologist.

In fact, in the faces of those involved in the protests appears to reflect growing outrage, an idea supported by recent statistics: only 56% of Portuguese believe that democracy is the best of the schemes and only 10% say they trust in parties and unions .