What is co-insurance?
Co-insurance term is where insurance companies share coverage of the same risk object, with the companies each paying a percentage of the loss amount. Premium is usually paid to both companies however. For example, if you go on holiday you might take out travel insurance however your contents may also be covered under your home insurance. In this instance you would claim off your travel policy, whom would pursue your home policy via a recovery. The split may be determined by the amount of cover, may be within the policy wording or simply be a 50/50 percentage, however an excess would still apply which the policy holder would incur.
Example intro to developed Computer Assisted Language Learning (CALL) software
The use of tutorial CALL continues to advance both within and outside the classroom; providing an increase in independent language learning and innovative teacher strategies. Our aim was to design an attractive, easy to use, integrative CALL package to teach a prepared set of vocabulary to intermediate b1/b2 level (in accordance to the 2009 Common European Framework) learners of English. Primarily following Chamot and O’Malley’s 1990 CALLA Model we targeted cognitive, social and metacognitive skills (see Table 1) in a range of activities to increase language proficiency and promote independent goal-orientated learning. By integrating a wide range of perceptual styles (see Table 2) the structure of our program reflects current teaching strategies, establishing declarative knowledge within the learner through explicit definitions and explanations. Our software concludes with opportunities for implicit procedural knowledge application through games, puzzles and group activities.
Outline and apply a theoretical model which could be used to get a picture of the profitability of the market for air travel from Bristol airport
Porter’s 5 forces model. Comprised of power of supplier, power of buyer, threat of substitution, threat of new entrants and market rivalry, this model can provide a clear indication as to whether the forces are high within the air travel market and thus making profitability hard to achieve. The first force within the model is that of supplier power. Due to the air travel industry relying upon external suppliers for fuel, labour and aircraft itself; it is arguable that the supplier power for the air travel industry is high. With a small amount of companies supplying aircraft at an extremely high price, it is arguable that air travel providers are at the mercy of these few suppliers and due to no substitute and long term contracts, have to accept the market price stipulated by the suppliers. Expanding this further, it could however be argued that airlines in fact have slightly more power due to the fact that aircraft suppliers have to sell to air travel providers. An aeroplane cannot be sold to any other market. Due to this differentiated product, buyers are in a marginally more powerful position. And yet with aircraft providers being extremely low in quantity, buyers have to compete with each other to secure the contracts, again positioning them at a disadvantage. The second of porter’s five forces is the power of the buyer. In regards to the air travel industry, aside from air travel companies being buyers themselves, of which has been commented formerly, buyers of air travel are powerful. Due to air travel being perhaps considered a luxury good for most consumers, the price elasticity is relatively elastic; a small change in price will lead to a large change in demand. This is arguably due to the income effect, whereby increased spending on perhaps an expensive airline would lower real income and thus lower demand for such a good. However, cheaper airlines could arguably produce more real income for people, and thus demand increases when the price is cheaper. In conjunction with comparison websites, no switching costs, and the increased amount of air travel available, it is arguable that the airtravel now are increasingly competing to attract buyers, and have to provide more value. It should however be mentioned that when it comes to porter’s third force, the power of substitution, the air travel industry are in a dominant position. Although for some destinations, substitutions of train and car are feasible, it is unrealistic to assume that these modes of transport are a threat to the airtravel industry. For example, to fly to America from the UK is the only feasible way of getting to that location. Therefore companies within the airtravel industry are at an advantage, as there are no functionally equivalent threats removing consumer demands. Likewise to this, porter’s fourth force, the threat of new entrants is also very low. The high capital required to enter into an industry deters off new entrants. It is arguable that existing firms will implement predatory pricing to increase barriers of entry for new air travel suppliers. This may include selling at below average total cost of the new entrants, emphasising that profit is difficult if not impossible for new entrants to achieve. Many airline industries can also rely on brand loyalty for revenue, again pushing out new entrants with no customer base. The money needed to enter such a high capital environment is therefore enough to deter most companies from entering. Finally, the fifth and perhaps most impactful force in porter’s model is that of rivalry. Rivalry within the airline industry is intense with firms operating in a oligopoly competitive environment. The market appears to be in a mature stage, with advances being relatively slow. The exit costs for such an industry is extremely high, as often there are long term contracts, as well as the issue of disposing of an aeroplane.