How is Claim Settlement Ratio calculated?

The formula for CSR is: (Number of claims settled ÷ Number of claims received) × 100. For example, if an insurer received 10,000 claims and settled 9,500, the CSR would be 95%.

What are the types of services offered by TPAs?

TPAs offer services such as claims management, health card issuance, medical network management, grievance redressal, and assisting policyholders with claim documentation and reimbursement.

How does reinsurance affect underwriting?

Reinsurance allows insurance companies to transfer portions of their risk to other insurers. This helps underwriters offer policies to high-risk applicants while ensuring financial stability. Reinsurers review underwriting decisions to determine if they align with acceptable risk levels, influencing the original insurer’s ability to issue coverage.

Does renters insurance cover all my belongings?

Renters insurance covers most personal belongings, but high-value items like jewelry, electronics, and collectibles may require additional coverage or riders to be fully protected.

How do regulatory authorities verify insurance reserves?

Regulators conduct financial audits, require periodic reports, and apply solvency tests to ensure insurers maintain legally required reserve levels for financial stability.

Do all countries have insurance guaranty funds?

Not all countries have guaranty funds. Some have alternative protection mechanisms, while others rely on stricter solvency regulations. Countries like the U.S., Canada, and the U.K. have well-established guaranty systems, whereas others may lack formal safety nets.

What types of disasters are covered by catastrophe insurance?

Catastrophe insurance typically covers hurricanes, earthquakes, wildfires, tornadoes, floods, and other severe weather events. Coverage varies by policy, location, and insurer, so reviewing policy details is crucial.

What is the difference between life and non-life insurance actuarial science?

Life insurance actuaries focus on mortality and longevity risks, while non-life actuaries assess property, casualty, and liability risks.