How is pricing determined in facultative reinsurance?

Pricing is based on the individual risk assessment, considering factors such as the insured value, loss history, geographical location, exposure type, and market conditions. Reinsurers may apply risk-loading factors or adjust premium rates based on their underwriting criteria.

What are the different types of homeowners insurance policies?

Common types include HO-1 (basic coverage), HO-2 (broader coverage), HO-3 (most common, covering most risks except exclusions), HO-5 (comprehensive), and HO-6 (for condos). Each provides different levels of protection.

What is a reimbursement cap in an insurance policy?

A reimbursement cap is the maximum amount an insurer will pay for a particular claim or policy period, preventing excessive payouts beyond agreed coverage limits.

Are endorsements permanent, or can they be modified later?

Endorsements are not necessarily permanent. They can be added, modified, or removed at any time, subject to insurer approval. Some endorsements may be required for specific circumstances and cannot be easily revoked.

Can Big Data help in reducing fraud in the insurance industry?

Yes, Big Data helps detect fraud by analyzing anomalies and patterns in claims, transactions, and customer behaviors, making it easier to identify potentially fraudulent activities.

What is a disappearing deductible?

A disappearing deductible gradually decreases over time if no claims are filed, rewarding safe drivers or policyholders with no losses.

Does travel medical insurance cover medical evacuation?

Yes, most policies include medical evacuation coverage, which arranges and covers the cost of transporting a traveler to the nearest suitable medical facility. Some plans also cover repatriation to the traveler's home country if necessary for treatment.

What is third-party property damage coverage?

It covers the cost of repairing or replacing damaged property belonging to another party, such as vehicles, buildings, fences, or other assets affected by the insured.