1. Based on the project timelines, how would you anticipate develo.docx

1. Based on the project timelines, how would you anticipate
developing and transacting SSH’s immediate and longer-term
insurance requirements?
The long-term insurance requirements will be addressed through
a strategy that is mutually agreed upon with Dar SSH. We have
suggested several proposals and recommendations for your
insurance program as more detailed in our answer to question 6
of the proposal questionnaire. Preliminary discussions including
the RFI presentation on 25th November will align both of us
(Gulf Insurance as insurance provider and Dar SSH as partner)
on objectives, timeline and process. The discussions should
include input from stakeholders within Dar SSH such as
regional offices and projects teams as on what are their
expectations from the insurance and how they can contribute to
effective and efficient insurance solution.
The preliminary discussions will lead to the following:
A. Development of requirements
B. Development of KPIs
C. Internal Information gathering
D. Approaching the insurance market for offering
It is difficult to set a time frame of the above exercise because
it will depend on how sophisticated the ultimate strategy and
based on internal dynamics within Dar SSH.
While discussions take place internally on the long-term
insurance requirements, we believe the immediate requirements
can be met through the current procedure, ad-hoc renewal of
existing policies. The objective in the immediate/short term will
be to ensure coverage continues without interruption so that
exposure has protection to a good degree. The requirements 3-8
in Appendix Two will be critical in this stage. Requirement 2
can be met partially through tendering process, which is
discussed in more details in following sections.
We propose the following measures to improve the process of
achieving the immediate insurance requirements:

· Tabulate all 79 policies within your Appendix 3 by expiry
date.
· Start the renewal exercise two months prior to expiry.
· Obtain internal feedback about current policy on the following
aspects:
· Claims experience
· What is outstanding, how long and why
· What was not covered and why
· How long the paid claims took time and what was the average
time of resolution?
· Survey on insurer handling of the claims
· Financial reconciliations
· Any claims agreed but not paid
· Any outstanding premiums
· What is the aging analysis of outstanding premiums
· Assess the renewal offer of incumbent insurer based on claims
experience
There are requirements that are associated with long-term
strategy such as 1, 9, 10 and 12. These requirements will be
implemented at that stage.
We are prepared and delighted to support you on requirements
11 and 15 with immediate effect as follows:
· Requirement 11:
By end of January, we shall provide you with market update
following the results of treaty renewals on 1st January. This is a
milestone that insurance markets follow closely since it
represents the general momentum of the market rather than
specific line of insurance.
We can further commit to quarterly newsletter starting Q1-2019
about the market updates.
· Requirement 15:
We are pioneers in professional training and this will be
discussed in more details in our response to question 7 of the
proposal questionnaire. The practical aspect is that Dar SSH is
invited to nominate 2 staff to attend our training program for
the year 2019. We are currently preparing our annual master

training plan. The training is mainly on insurance and supported
with soft skills. Our own staff attend these programs as well so
your nominated staff will have good opportunity to build
relationships and understand our process and at the same time
share your expectation. This is what we call alignment at
different layers.
We are further happy to inform there are no costs on Dar SSH in
respect of the requirements 11 and 15 above.
2. From your knowledge of SSH planned operations, what
aspects do you believe will be critical in participant service
offering and transacting a successful insurance placement for
SSH?
Reviewing Appendix Three of the proposal, we believe the
following are critical for SSH:
A. Your service provider should be regional
Since SSH is operating in different countries, you will need a
partner that is also of the same caliber and operating in the
same countries or more. Working with a regional insurance
provider will reduce your workload and remove the need to
approach local insurers. You may depend on your local office,
but there is risk in this process as a local insurer may not meet
your financial security conditions, such as credit rating or
solvency.
Working with a regional insurer will provide you with insight
on the overall insurance cost across your organization and by
region. It is indirect mechanism to assess the insurance cost
from the head office and allows proper monitoring of this
activity.
B. The account team within the service provider should include
bilingual skillset
Since many of the insurance contracts involves government
projects, it is critical that your insurance provider has bilingual
skills. This is critical to negotiate insurance provisions within
the Contract or discussing feedback of project principal on
insurance contracts. It maybe required to attend meetings with
local government offices to discuss and finalize the insurance

contract.
In other cases, the service provider needs to provide Arabic
version of the Insurance Policy. Local or regional brokers or
even international reinsurers (in DIFC or others) will have very
hard time to help on this request. They will certainly resort to
third party translators. According to our experience, the output
was not up to our expectation. We have worked with translation
offices in Dubai and Jordan and can inform that we did not
obtain good results. If good translation is required, it will have
a major cost on SSH and for certain an additional cost above the
insurance premium.
Assuming translation is obtained, it will be extremely difficult
to obtain the insurance/reinsurance agreement to follow the
Arabic wording in case it contradicts the English wording. Even
if the provider accepts the Arabic wording at the time of
insurance contract, SSH needs to be convinced that insurance
provider is aware about the potential consequences and will
honor their obligation if this scenario occurs.
We believe this is one of our competitive advantage compared
to local and regional markets. Our work force is divers and
include a large share of Arabic speaking staff. We were
successful in attending meetings with the Public Authority for
Housing Welfare (PAHW) and produced wording to their
satisfaction. The translation was carried in-house and was
reviewed and approved by legal and claims teams. We can
replicate this process on other accounts with fine tuning at short
notice.
Our commitments to SSH project principals (government
entities and others) are well studied and understood.
C. Strong Professional Indemnity specialization and capabilities
26 Policies in Appendix Three are for professional indemnity
out of 79 (33%). This suggests that your insurance provider
should have strong capabilities in this particular field. The
strength can be assessed by understanding the function within
the organizational structure that handles professional indemnity.
If it is part of larger function, it will imply that it is not a major

value proposition by the service provider. If the organizational
structure of the participant contains an independent function for
handling these insurances, it will imply a strategic focus on
developing and improving these lines of business. When an
employee is assigned with few lines of business, they will
certainly groom and develop their expertise.
Professional indemnity is part of liabilities line of business and
handled by Casualty Underwriting division. The local and
regional practice is to focus on property and engineering lines
and assign casualty as secondary responsibility to this function.
We are pioneers in the local market by being the first to
establish an independent underwriting division for casualty
lines. Many regional markets also or re/insurance consultants do
not have dedicated casualty or professional indemnity
personnel.
In 2017, our casualty department was established, and handover
was made. Client visits were made to our important clients
including SSH to introduce these changes. We can share with
you that one of the major factors for our decision to separate
casualty was to support professional liability business such as
those of SSH, medical malpractice and D&O.
Gulf Insurance is unique in within the local and regional
market. Even some international brokers within Dubai
International Financial Center (DIFC) may not have this
function or depend on one person and will need to refer the risk
to London for review or expert feedback.
One achievement for the newly established department was the
successful bidding on the Director’s & Officers Liability
Program for Kuwait Petroleum Corporation – KPC and all its
subsidiaries worldwide. The limit of liability for the program
exceeds USD.100 Million and involves arranging local
certification in different countries such as China, Canada,
Pakistan, etc.
We are certain that with our recent experience in the above
program and others, we are stronger equipped to meet the
requirements of SSH in the immediate and long terms.

3. What strategies would you recommend to SSH to make its
insurance program as efficient and comprehensive as possible in
terms of risk mitigation, premium spend, coverage and claims
resolution? This may include pooling and potential leverage of
subconsultants insurance and negotiations of appropriate
clauses and/or exclusions as appropriate?
First: Insurance in Work Flow
The work flow within Dar SSH needs to incorporate and
emphasize on the insurance element at all stages of the flow.
Detecting insurance requirements at early stages of the work
chain will certainly enable the insurance provider to provide
better solution and more importantly more efficient and cost
effective to Dar SSH. The challenges that currently occur with
insurance placement are due to difficult time limits that are
imposed by either project principal or project cash payments.
The purpose of this strategy is to forecast these situations in
advance so that necessary preparations are made.
The role of insurance starts before submitting the tender
document. Insurance cost is part of the contract cost that will be
built and calculated for contract price. Making internal
estimates about insurance claims poses the risk of underpricing.
Obtaining indicative quotations for costing purpose will further
facilitate the process after the contract is awarded. The pressure
to secure the insurance cover after contract award will ease
significantly if insurance quotation was obtained prior to
contract submission.
On obtaining indicative quotation, it will be possible to serve
quickly if the contract is small in size, short period without
large extended reporting period. However, if these parameters
are unusual or significant, it will take time to process and assess
the pricing. Therefore, proper time needs to be allowed even for
indicative quotation for contract pricing.
What we ideally look for is proper sharing of information well
in advance so that things fall in place quickly when the time
comes. For instance, we approached SSH for their new contract
as joint venture with the Turkish Consultant Proyapi Insaat to

upgrade Damascus Street for the Ministry of Public Works.
Cooperation at this stage or even earlier will facilitative the
future running of this and other projects.
Another critical aspect is the insurance scope that is required
for the tender. We have seen, for instance, contracts of Dar SSH
with Bahrain Government on housing projects. The issue with
these tenders were about the limit of liability being on without
aggregate basis. In some cases, you will need to go back to the
project principal to discuss the insurance provisions of the
contract because what they seek is either not a market standard
or will be extremely expensive. Not having an agreement among
project principal, contractor and insurance partner on such issue
will have serious impact on the feasibility of the whole
contract. The challenge in this case was discussing this point in
the middle of the project. While we are unsure on the outcome
of this business, but we are proud of being able to secure terms
for this contract. Even London market was unable to give such
coverage.
We hope the above demonstrate the various scenarios on which
it is critical to obtain insurance input at tender submission
stage. As we said in the beginning, this is not a one-time
exercise. It continues at all stages of the process. Project
management team should have this as check list within their
project requirements. The below scenario will explain this idea
in detail.
When the contract reaches the end, Dar SSH must be proactive
in securing extension agreement. We can support by sending
notice on the projects that will expire and have sent on several
cases notices few months in advance. One scenario that need to
be fixed is approaching the insurance for extension at the time
of obtaining payment from project principal and when the
period is over. The difficulty is not about the cost, but rather on
the concept of giving coverage retroactive even if No Claim
Declaration is given. The gap in coverage will make it hard to
identify what is covered, when it stopped and when started
again because the actual insured activity is continuous for the

same project. The complications will manifest at the time of
claim. Such technicalities certainly delay the work process. It
will be useful to return to the basic concept of insurance. It is a
promise to pay for fortuities in the future and not a document to
complete formalities.
Second: Risk Management Function
The work flow needs to be supported and enforced by
organizational structure. We highly recommend establishing a
risk management function that is accountable and responsible
for insurance among other responsibilities. Having a dedicated
function for insurance and risk management is critical for a
company in the size of Dar SSH. Many companies in Kuwait
and overseas already made this step including companies
smaller than Dar SSH. Apart from banks and telecommunication
companies, we know there is risk management department
within Kuwait Petroleum Corporation, Al-Shaya Retail Group,
Mezzan Food Group, ACICO Industries, Abyat Megastore and
Heavy Engineering Industries & Shipbuilding Co. – HEISCO.
The cost of supporting the organizational structure with risk
management function will be lower compared to outsourcing
this task, or more correctly part of it since insurance is part of
risk management strategy of an organization. It is not
conventional to outsource the risk management function in a
whole. It can be arranged for specific exercises such as creating
a risk register. Additional benefit of internalizing this function
is the efficiency in communication. Risk is an integral part of
operation and having a dedicated person within the organization
who is in constant touch with all stakeholders will no doubt
speed up the process.
Efficiency will be created for the insurance as a program, cost
and cover because it will be part of an overall strategy of risk
management that is applied across the organization. Having a
strategy for risk management will mean carrying internal and
external assessment of the organization and determining the
areas that needs protection. Mitigation measures will be planned
for the areas that need improvement. Accordingly, the scope of

insurance coverage will be aligned and fit with the overall risk
management strategy.
There is additional value for having risk management. It should
reduce the insurance cost by maintaining a healthy and low loss
ratio. The frequency and severity of claims should reduce, if
effective risk management controls are put in place.
The above lead us to recommend not to appoint an insurance or
reinsurance consultant. We appreciate the approach of SSH in
emphasizing protection of risk exposure. We anticipate various
limitations in terms of capabilities and scope in the handling of
broker(s) that will lead to higher cost in the long term and
detrimental to the interest of SSH in case of claims.
Third: Consolidation of Insurance Placements
This strategy is about pooling/combining of insurance policies
that are repeated across different countries. We can assess the
consolidation strategy based on the expected insurance
requirements (Appendix Two) and actual insurance
requirements (Appendix Three). Please find the below table that
highlights the overlap between expected vs. actual and
corresponding territories:
No.
Coverage
Appendix 2
Appendix 3
Countries
1.
Professional Indemnity
MENA, Bahrain, Kuwait, Qatar, Oman
2.
Decennial Liability
3.

Workmen’s Compensation/Employer’s liability
MENA, Kuwait, Oman and UK
4.
Third Party Liability/Commercial General Liability
Bahrain, Kuwait, Oman
5.
Travel
6.
Life
7.
Director’s & Officers
8.
Medical Benefits
9.
Property All Risks
Kuwait, UAE
10.
Plant & Machinery

Kuwait
The above shows that 8 types of insurances are required, but 5
are actually enforce. Different approach and timeline need to be
adopted for the coverage that is currently in place vs. coverage
that is obtained for the first time.
With further analysis of the current policies, we find that four
out of five are spread in different countries and they are
professional indemnity, workmen compensation, third party
liability and property all risks. For these policies we
recommend consolidation as detailed in the following
paragraphs.
Consolidation will allow you to obtain wider scope of coverage
at reasonable cost due to economies of scale. The minimum cost
on individual risk (Policy) will aggregate the overall cost but
unifying the insurance program will have one minimum cost.
Certainly, consolidation cannot be made for different types of
insurance coverage such as workmen compensation and medical
or professional indemnity and travel. What we mean by
consolidation is for the same type of risk. The number of
current policies is 45 according to Appendix Three (excluding
plant and machinery in Kuwait). These will be replaced by four
master policies only.
For jurisdictions that require locally admitted policies, the same
can still be achieved through consolidated programs. The
insurer of the master insurance program will communicate with
its local partner to issue a fronting policy based on minimum
fee. This is faster and economical.
The above suggests the necessity to have the master insurance
program with a regional insurance provider that has subsidiaries
or local partners in different countries. This supports our
answer to question 2 of the proposal questionnaire. Gulf
Insurance Group enjoys the position of a regional insurance
provider. We have subsidiaries in Bahrain, KSA, Egypt, Jordan,
Iraq, Syria, Algeria and Turkey. We have associated company in

UAE. Our network of partners extends to all corners of the
world through our shareholders (Kuwait Projects Company –
KIPCO) and the Canadian Insurance Conglomerate (Fairfax)
that has insurance subsidiaries in Latin America, East Asia,
USA and within Lloyds of London.
The recommended approach to consolidate the insurance
programs is as follows:
A. Analyze the current policies in-force and then carrying
detailed review of coverages such as similarities and differences
and claims experience. This will involves gathering documents
from different companies and obtaining loss ratio from the
insurance companies. Detailed list of claims to be obtained to
understand where losses are coming from and what is their
extent. Feedback to be obtained from internal stakeholders.
B. Conducting gap analysis between current policies, market
standard and risk exposure of the operation. The first element is
establishing thorough understanding of SSH own operation and
associated risks – operation, liquidity and market dimensions.
Then checking how these exposures can be covered by either
current policies or market clauses.
C. Preparing the technical specification of your insurance policy
along with preparation of the underwriting information.
D. Inviting prices based on the technical specification and
making market presentations. Please refer to our discussion of
tendering and in particular to your requirement no. 2 of the
Service Requirements in Appendix Two.
The timeline for steps A and B is estimated at 2 months per
each type of insurance. Step C is estimated to take one month.
Step D is expected to take 2 months. Applying the timeline of
our proposal will mean 5 months per Policy. This will produce
15 months for three policies. They can be conducted in parallel,
but with additional resources.
For policies such as Travel, Life, Director’s & Officer and
Medical Benefits that are new to SSH, the following is
recommended:
A. Determine the objective of obtaining the respective insurance

coverage by either benefit or risk protection. It is important to
set this objective and keep it in mind at all stages of the
insurance placement. For instance, medical benefits are form of
benefits. The cost of said scheme is substantial and will have an
impact on the cost of other classes of insurance if the placement
is on portfolio basis. The size and scope of coverage should be
set properly based on this objective.
B. Gathering underwriting information for respective type of
insurance. You will find multiple versions of proposal forms for
a given class of business such as Director’s & Officers. Care
should be given in using the most common form to collect
information. This will involve communication with various
divisions within the organization and will certainly take time.
C. Preparing the technical specification for each line of
business based on the market standards and your program scope.
D. Selection of insurance carrier based on market competition.
It some situations, it can be found that insurance price exceeds
the budget allocated for the given insurance scheme. In this
case, it will be necessary to return to project scope to modify it
in order to meet the budget. Or alternatively, the management
has to decide if to accept the increase in budget cost or
postpone the project for next financial year.
We like to share with you one example to show the difficulty in
budgeting process for insurance cost. A client prepared the
technical specification and obtained rough estimate of the
insurance cost. The management decided to shift the program to
next financial year. When the client came to the market, it was
found that market conditions changed and the initial estimates
were no longer valid.
Fourth: Consolidation of Specific Project Professional
Indemnity (SPPI) Policies
It is required to have a separate discussion on the consolidation
of professional indemnity policies. As we saw earlier, PI

represents a third of SSH insurance business. Seeing the number
of policies per country, there are 20 policies in Kuwait only. So
the consolidation is not required across countries, but within
Kuwait as well in the case of PI.
We expect the different PI policies were procured as Specific
Project Professional Indemnity (SPPI). We appreciate there are
various reasons to obtain SPPI such as duration of coverage,
different extended reporting period, different limit of liability
or simply because the project was not part of the estimated fees
under the annual blanket coverage.
We propose an insurance facility to cover all SPPIs. This
facility will expedite SSH workflow, better pricing and wider
scope of coverage. This idea was proposed during last year as
part of discussions to improve the process. What is important to
make this strategy work is obtaining good information from
SSH on the business forecast. Deploying insurance capacity for
many projects with good pricing requires strong business case.
We need the following details to prepare an offering:
· Number of SPPI policies that were procured during the past
five years.
· Expected number of SPPI policies in the coming 24 months
which SSH is in processing of tendering or working to
participate
For each of the above, the following information is required:
· Project description, scope of work, value, fees, period and
insurance requirements
· For past projects, we need to analyze the limits, extended
reporting period and duration of coverage.
It will be useful as well to understand the main project
principals or identify the pattern of insurance requirements per
government entity/project principal. We can develop template
for each principal although it does occur that same principal
make contradictory requests for different projects.
It is important to emphasize that information needs to be
credible. Many customers provide ambitious business forecasts
for the purpose of obtaining competitive insurance package. If

the information is not prepared well, the insurance package will
be unsustainable.
Fifth: Consolidating Insurance Portfolio
This is about the pooling of different insurance programs with
one single insurer to create a portfolio. It is certainly possible
to obtain premium advantage on a case by case basis since some
insurers are aggressive on certain lines and not the others.
However, creating and maintaining a portfolio with one single
insurer will create leverage on claims, especially exceptional
ones or those that fall in the borderline of insurance coverage.
The attitude of insurers toward these gray issues will be based
on the economic viability of the client – continuity and
portfolio. The leverage does bring cost but will be marginal
compared to greater benefit/value.
The proposed pooling strategy should be implemented properly
to achieve the desired objective. It will not work with
international reinsurance market. Reinsurers are usually
specialized in one line of business or few and will not cover all
spectrum of Dar SSH requirements. Even if they do, the size of
regional business will not be sufficient to create the intended
leverage. The same logic applies to insurance intermediaries,
whether local or regional. The broker may place the business
with different carriers. Assuming they direct majority of the
business to a single source, the decision of claim resolution will
not be at their hand because they are not risk carriers. This
strategy is more suitable with local insurers and more
specifically those regional and leading markets. Gulf Insurance
once again enjoys this leading market position. What matters
more in business is the support and partnership that each party
demonstrate to others. The appetite to absorb small losses over
short term or in one risk will definitely strengthen the
partnership. This is clearly evident in the insurance business
and portfolio/pooling strategy will support the long term of
objectives of the Company.
4. How would you expect to develop the SSH program structure

over the next three years?
5. Please provide details of the proposed account management,
broking and other risk management resources required to
service SSH including but not limited to reporting lines, service
personnel roles, etc.
Account management in Gulf Insurance is assigned to the
technical department that has the largest share of client’s
portfolio. If we assess the insurance requirements in Appendix
Two, 6 out of 8 (75%) are casualty lines. These lines are
professional indemnity, decennial liability, workmen
compensation, third party liability, travel and director’s &
officers. The insurance requirements in Appendix Three, 3 out
of 5 (60%) are again casualty lines and they are professional
indemnity, workmen compensation – including employer’s
liability, third party liability – including commercial general
liability. The client relation function or account management is
merged with the technical department. Our account management
decision seeks to provide direct contact for the client with
decision making party and action doer. The technical team has
stake and incentive to service the client through internal KPIs –
client retention and satisfaction. The client, on the other hand,
will have real time update on the progress of the task.
For insurance requirements within other divisions, the technical
department will have greater incentive to service the client. If
the technical department cannot service the client in other lines
of business, they will face competition in their own line of
business. So the negotiation taken by technical department on
your behalf will be stronger. This represents indirectly the
broking role to service your account, assuming that you adopt
the pooling/portfolio strategy. The role of account management
is part of the department management responsibility. We believe
this business module brings superior value to Dar SSH in terms
of effectiveness and efficiency.
Being a large, multinational and leading insurance group, all
different functions that are necessary to support the risk of our

clients are available. One of the main driven factors for
achieving ‘A’ rating by Gulf Insurance is our risk management
function. In addition, we are one of the few, if not only one, in
the local market that has a risk engineering function. The
purpose of risk engineering is to carry site survey to assess the
safety procedures. As a testimony of our capabilities and
expertise, our reinsurers accept the reports and findings of our
risk engineering rather than seeking third party services. This
function can only be found within international reinsurance
carriers. We are proud that our standard of operation is
advanced to be in line with international reinsurers.
In addition, Gulf Insurance is well advanced in IT solutions and
undertaking major strategic initiatives to support our clients.
We are pleased to share with you the following initiatives that
we believe are both relevant and important to Dar SSH:
· Client portal – Liferay
· New IT system
6. What will be the composition of the account team in terms of
critical strategic and technical skillsets? How do you envision
the continuity of these skills sets on the SSH account in the
future?
The account team will be the technical team that handles
majority of your insurance requirements (60-75%). Since your
insurance requirements are dominantly in casualty lines, the
casualty underwriting team will be your account team. The team
composition as follows:
We believe the critical strategic perspective of your account is
achieved through the assignment of your account management
to one of our executive management team members. Ahmad
Husain - Executive Manager of Marine and Casualty lines will
be your account manager. The assignment demonstrates our
commitment to support Dar SSH at the highest level. Your
account manager reports directly to Deputy CEO – Operation.
Ahmad holds bachelor’s degree (honor) in computer engineering
from Oregon State University, USA and master’s in business

administration from Kuwait Maastricht Business School
(KMBS). The strategic skillset is supported not only through
position and experience, but through strong academic record.
In terms of skillsets, we are delighted to share with you our
organizational culture that encourage personal development.
Training is a critical element of our team development and
performance review. Our Company started this year a
comprehensive training program to all staff so that technical
staff (underwriting and claims) have minimum qualification of
Certificate in Insurance from the Chartered Insurance Institute,
UK. The certificate is composed of three exams that needs to be
passed, introduction, underwriting and claims. We can advise
that all your handling team members in casualty achieved the
said qualification. The account manager, on the other hand,
holds the Associateship of Chartered Insurance institute, UK.
The team is made up of young and energetic staff. The average
age of our team members is (with Roy or without).
7. How would you describe the added value and differentiated
qualities that your firm will bring to the SSH operation?
8. Explain your methodology and KPI performance criteria to
monitor, evaluate and maintain the quality of participant
services and performance during the course of the agreement.
9. What claims support / structure would you envision adopting
in the event of a commercial market loss to SSH?
Discussion of requirement No. 2 of the service requirements in
Appendix 2
The first step for formulate a renewal strategy is to obtain
internal feedback. We have highlighted several aspects that can
be looked upon during this process. Based on the outcome of
this step, renewal strategy is developed. The usual practice

involves inviting three different quotations, including one from
the incumbent insurer. The purpose is to create a competitive
environment for better insurance solution.
Although the declared purpose of this exercise is to achieve the
best coverage at the best price, it normally leads to a single
benchmark which is the premium cost. We do not deny that
there will be discussions about some benefits, but the ultimate
deciding factor will be price. Our objection on this approach are
given below:
· The insurance benefit is usually jettisoned for the sake of
price. When the price is agreed with the insurance carrier, it
will be difficult to obtain further improvements on coverage.
There will be always sacrifice on coverage. This supports the
perception that standard tendering is a price driven process that
does not provide proper balance between risk protection and
cost.
· The frequent invitation of bids on a yearly basis provides a
negative reputation to insurance market. The market will not be
inclined to participate on a yearly basis. Even if they do so, the
flexibility for commercial considerations at the time of claims
or others will be much less.
· It emphasizes short term gains and does not create sustainable
economic value. It is critical to create a long partnership in
insurance, similar to credit history for individuals, to secure
necessary support when the risk materializes. Insurance
companies may invest in certain accounts or decide to absorb
losses in a given year for the sake of achieving better results in
the future. When the client denies the insurance company the
opportunities to building a sufficient cushion during several
years, the insurance company will not provide competitive
pricing that is “superior” to market standard.
· Inviting tenders after having many losses or high loss ratio
will signal negative attitude toward the business partnership.

The crucial objective for insurance business is to establish solid
and deep relationship with the insurance carrier so that
necessary support is obtained at the time of crises/claims. The
cost of one single incident will worth the premium of many
years and sometime decades. The insurance carrier that will
support you is the one who has been your partner for many
years. Shifting the business frequently or sending signals that
partnership is not a priority will certainly reflect on the
handling of your insurance claims.
Our suggestion is to formulate a balanced evaluation matrix on
weighted average for different KPIs. Price will be one element
of this criteria. A tender is made every three years including
incumbent insurer. The purpose of the periodic tendering, rather
than yearly, is to allow the insurance carrier to invest on SSH
insurance account and generate economic value. The yearly
tendering will not encourage insurance carriers to aggressively
compete. After obtaining the market feedback, our
recommendation, based on market practice, is to share the terms
with the preferred insurance partner for matching. This step will
demonstrate SSH commitment to work with the preferred
partner but based on fair and reasonable insurance program that
is aligned with industry standard.
Discussion on the Reinsurance
Issue or decision of consideration
In the presented worksheet scenario, the decision of
consideration is whether or not to check the sex of the child.
Given that the country has imposed the one-child policy, this
decision is of utmost importance to the young couple. Since the
couple is only allowed to have one child, it seems that checking
the sex would put them under a certain amount of pressure. For
one, most of the families prefer male children, and if the child

is a female, Fang Yin may be put under the weight of
terminating the pregnancy by Chang’s family.
Stakeholders
It is upon the couple to decide whether to determine the sex of
the child or not though Fang Yin carries the more onerous
burden because she does not care about the sex of the child so
long as the child is completely healthy. Chang, on the other
hand, may be more interested in knowing the sex of the child
since he and his family want a male child. In case the child is a
female, he may, in turn, pressure his wife to terminate the
pregnancy as most families in China and in a bid to please his
family. Chang’s family will also significantly influence the
decision on whether or not to determine the sex of the child.
Since they have already shown their interest in getting a boy to
carry on the family name, they are most likely going to push for
the sex check. In case the child is female, they have even
offered to cater for the costs that will be incurred in the process
of terminating the pregnancy.
Alternatives in Choice
In this scenario, there only seems to be two viable choices.
Chang and Yin May can determine the sex of the child. In this
case, the couple can then decide to keep the child if it is a boy
and terminate the child if it is a girl despite Yin May’s wish to
keep the baby. This would seem to be the best alternative as
Chang, and his family would be pleased and Yin May and
Chang, being a young couple, could still get pregnant and
conceive the much desired male child.
On the other hand, Yin May can decide not to take the sex
determination test and keep the child no matter the outcome.
This decision may however not be favorable as it would not
please her husband as well as a family. It would seem that Yin
May does not want Chang to carry on the family name by
deciding to give birth to the child even if it’s a female.
Whitener (2017) argues that choices are usually determined by
other events including human actions which are external to
one’s will whereas decisions can be made in different

circumstances no matter the outcome. I, therefore, believe that
the final decision lie in the hands of Yin May has she carries
the child in her womb. Despite the choices that have been
presented to her by her husband and her husband’s family, she
can decide to make herself happy and give birth to the child so
long as it’s healthy.
Reference
Whitener, S. (2017). The Difference Between Making A Choice
And A Decision. [online] Forbes.com. Available at:
https://www.forbes.com/sites/forbescoachescouncil/2017/05/19/
the-difference-between-making-a-choice-and-a-
decision/#8c8ad2c4b7a3 [Accessed 1 Oct. 2018].
Content Assessment
1. Briefly identify these "Concepts in Critical Thinking", as
presented in your first writing assignment. Working from the
premise that one of your siblings is in need of a kidney
transplant, identify and/or explain the following.(6 pts.)
a) What is the Issue of consideration
b) Relevant Information: data, facts, observations, concerns to
decision making
c) Theories, laws, principles involved in the decision making
d) Points of view, perspectives associated with decision
e) Assumptions, presuppositions, things taken for granted
f) Consequences , implications, complications possible
2-Please define Bioethies as you understand it thus far from
coursework. (2 pts.)
3-There are several theories involved with ethical decision
making. Briefly describe how 'Deontological' and

'Consequentialism' theories differ. (2 pts
4-Please list the four main components involved in a Bioethical
Analysis as the one addressed in our first class assignment and
briefly describe each. (4 pts.)
5. Please identify the four main areas of influence in the
diagram for Moral ProblemSolving we examined and briefly
describe them. (Cardinal Directions). (3 pts.)
6-Likewise, please identify the four main concepts or theories
of influence in the diagram for Knowledge Acquisition, and
briefly describe them. (3 pts.)
7-. Please explain your understanding of the meaning of
perspective and briefly explain why it has relevance when
discussing bioethical issues. (2 pts.)
8-. There are four models of Intervention related to the
responsibility of the scientist or practitioner. Please choose one
of the following and explain it: Total intervention, No
intervention, Limited intervention, Directed intervention (2
pts.)
9-. With regard to characteristics of technology, please
describe your understanding of the concept of Manipulation and
how this concept could pose a threat to us as a predominately
autonomous society. (2 pts.)
10- Please explain the four elements or components of informed
consent. (4 pts.) 1. Competence- 2. Disclosure - 3.
Comprehension - 4. Voluntariness -

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