What is an insurance policy?

The Business

The business is made up of three separate reporting sectors.

1) The commodity business cover all international shipments of value product on behalf of customers with typical shipments infrequest but high value. Services uses an armoured car for ground transport, international shipments mostly travel in the valuable cargo section of a plane and can use local charter flights on planes or helicopter where routes are not supported by commercial airlines. Insurance premiums are fixed at the start of each year end under a global transit policy and do not fluctuate until the start of the following year.

2) Armoured business (LTV&D) uses armoured car ground support with individual shipments being higher volume but lower value than in the commodity business. International shipment mostly travel in the valuable cargo section with all shipments being via commercial airlines. Insurance for day to day contracted shipments is fixed at the start of the year as part of the global transit policy.
The armoured business also provides services to occassional industry shows. These shows are in addition to the normal day to day business.
Show shipments are transported in the same way as normal LTV&D shipments however will be subjected to a separate insurance policy based on value.

3) IPS (LTD&M) is an insured parcel service and uses traditional courier companies to complete movements. Shipments are high volume but tend to be low in value (under $ 75,000 per shipment). Shipments are not moved in an armoured car with a single charged being made for each shipment by the courier company, Insurance is charged for each shipment based on value and does bear some relationship to revenue.

The accompanying spreadsheets detail performance for a 6 months period. Below the forecast, budget and prior year figures there a number of business specific changes. You need to project the remaining months business taking into account the business overview above, the first 6 months performance and the adjusting factors for each reporting sector.

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