How do insurers use big data for personalized pricing?

Insurers analyze big data from wearables, social media, and behavioral patterns to tailor premiums based on individual lifestyles and risks. Personalized pricing helps policyholders receive fairer rates while encouraging healthier or safer habits.

Do higher deductibles lower insurance premiums?

Yes, choosing a higher deductible generally reduces premiums, as the policyholder agrees to pay more out-of-pocket before the insurer covers losses.

Can I claim for a suitcase as well as the contents?

Yes, most travel insurance policies cover both the suitcase and its contents. However, the coverage for the suitcase itself is subject to the policy's baggage limit. If the suitcase was particularly expensive, check if additional coverage is needed or if depreciation will affect reimbursement.

How do I determine the amount of coverage I need in a term insurance policy?

The amount of coverage you need depends on factors such as your financial responsibilities (mortgage, debts, family living expenses), income replacement, and future financial goals. You can use a life insurance calculator or consult with an advisor.

What is the main purpose of facultative reinsurance?

Facultative reinsurance helps primary insurers reduce their exposure to large, complex, or high-risk policies by transferring a portion of the risk to a reinsurer.

How does reinsurance affect regulatory compliance for insurers?

Reinsurance helps insurers meet regulatory capital requirements by reducing their retained risk exposure. Regulatory bodies require insurers to maintain certain solvency levels, and by transferring risks to reinsurers, companies can optimize capital allocation while ensuring they meet solvency and reserve obligations under local laws.

What is an indemnity period in business insurance?

The indemnity period is the time frame during which an insurer will cover financial losses, such as lost income due to business interruption, after a covered event like fire or natural disaster.

What conditions qualify for long-term disability benefits?

Qualifying conditions include cancer, mental health disorders, musculoskeletal injuries, neurological disorders, and other severe illnesses preventing work.