What is proportional reinsurance?

Proportional reinsurance is a type of reinsurance where the reinsurer shares a fixed percentage of the insurer’s premiums and losses. The ceding insurer and reinsurer split the risks and claims based on the agreed proportion, ensuring balanced risk distribution.

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What is the claim settlement ratio (CSR)?

The claim settlement ratio (CSR) is the percentage of total claims settled by an insurer during a financial year, indicating the insurer’s reliability in processing and honoring claims.

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How do TPAs handle medical reimbursements?

TPAs process medical reimbursements by reviewing submitted claims, verifying the medical expenses incurred, and ensuring they are eligible for reimbursement under the insured’s policy.

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Is the deductible the same every time I file a claim?

Yes, unless you change your policy or adjust your deductible, it stays the same for every claim. You will need to meet that deductible amount each time.

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Can I add earthquake coverage to my existing homeowners policy?

Some insurers offer earthquake endorsements to homeowners policies, while others require purchasing a separate earthquake insurance policy.

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Can I use my smartphone for UBI?

Yes, many insurers offer mobile apps for UBI, allowing you to track your driving behavior using your smartphone instead of a separate telematics device.

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Does my auto insurance policy include a grace period?

Many auto insurance policies provide a grace period, usually between 10 and 30 days. However, some states and insurers do not offer any grace period, so it is crucial to verify with your provider.

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Why are insurance premiums increasing due to climate change?

Increased disaster risks and more frequent claims force insurers to raise premiums to cover potential losses and maintain financial stability in high-risk areas.

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