How is an insurer’s solvency ratio calculated?

The solvency ratio is calculated by dividing an insurer’s available capital by its required capital. It is expressed as a percentage and indicates an insurer’s financial strength. A higher ratio means better solvency, while a ratio below regulatory thresholds may indicate financial distress.

How can businesses reduce cyber insurance premiums?

Implementing strong cybersecurity measures, conducting regular risk assessments, training employees, using multi-factor authentication (MFA), and having an incident response plan can help lower insurance costs.

Can I have both public and private health insurance?

In some countries, individuals can have both public and private health insurance. Private insurance can help cover services not included in public plans or provide faster access to care.

Can I pay my premium annually instead of monthly?

Yes, many insurance companies offer the option to pay premiums annually, which can sometimes come with discounts compared to monthly payments.

How does a ceding company report reinsurance transactions in financial statements?

Reinsurance transactions are reported as ceded premiums, reinsurance recoverables, and liabilities in financial statements, showing how much risk has been transferred and the impact on financial health.

How do reinsurance companies handle catastrophic events?

Reinsurers use catastrophe modeling, risk diversification, and specialized coverage structures to manage financial impacts of large-scale disasters.

What are the disadvantages of facultative reinsurance?

The main disadvantages include higher administrative costs, slower placement due to case-by-case evaluation, potential coverage gaps, and the possibility of the reinsurer declining to accept certain risks, limiting an insurer’s ability to provide coverage.

Does homeowners insurance liability cover intentional acts?

No, homeowners insurance liability coverage does not cover damages or injuries caused by intentional acts. If an injury is caused by deliberate harm, you would be personally responsible for the costs.