Should I choose an insurer solely based on CSR?

No. While CSR is important, you should also consider claim processing time, policy exclusions, solvency ratio, customer service quality, and premium affordability before selecting an insurance provider.

Are TPAs required to maintain any standards of service?

Yes, TPAs are required to adhere to guidelines set by IRDAI, maintain service standards, ensure transparency in claims processing, and deliver quality customer service under their licensing terms.

Who is considered the policyholder in an insurance policy?

The policyholder is the individual or entity that owns the insurance policy, pays the premiums, and has the authority to make changes to the policy. This person has the legal right to designate or change beneficiaries and adjust coverage as needed, subject to the insurer’s terms.

Does renters insurance cover water damage?

Renters insurance covers water damage caused by sudden and accidental events like burst pipes but does not cover flooding. Separate flood insurance is required for flood-related damage.

How is RBC used in the context of regulatory oversight?

RBC is a key tool for regulatory oversight, allowing authorities to assess whether insurers are adequately capitalized to cover their risks, ensuring market stability and consumer protection.

What is a hazard in risk management?

A hazard is any condition, behavior, or situation that increases the likelihood of a peril occurring. In risk management, hazards are identified to prevent potential losses. For example, poor electrical wiring is a hazard that increases the risk of fire, while icy roads create hazardous conditions for drivers.

How do hurricanes impact property insurance?

Hurricanes cause extensive damage to homes and businesses, leading insurers to raise premiums, introduce higher deductibles, and require separate windstorm or hurricane coverage in coastal areas.

How can risk management impact the solvency of an insurance company?

Proper risk management ensures that the insurer can handle large or unexpected losses, maintaining its solvency by balancing risk exposure with capital reserves and adequate coverage.