What role does depreciation play in claim settlement?

Depreciation reduces the payout based on an item's age and wear. Some policies offer actual cash value (ACV), which factors in depreciation, while replacement cost coverage (RCC) reimburses the full cost of replacing damaged items without depreciation deductions.

What types of insurance can brokers help with?

Brokers assist with various insurance types, including auto, home, health, life, commercial, liability, and specialty insurance policies tailored to specific needs.

What should I consider before purchasing hull insurance?

Consider vessel value, operating risks, policy exclusions, deductible options, premium costs, and additional coverage for specific risks like piracy.

How do I file a flood insurance claim?

After a flood, document the damage with photos and videos, contact your insurance provider immediately, and fill out a proof of loss form. An adjuster will inspect the property to determine the claim amount based on policy coverage.

What is treaty reinsurance?

Treaty reinsurance is a type of reinsurance where an insurer and reinsurer enter into a contract that covers a whole portfolio of risks, rather than individual policies. Under a treaty, the reinsurer automatically assumes part of the risk for all the policies within the agreement, regardless of whether the specific risks meet predefined criteria. This arrangement provides greater stability for insurers and broader coverage.

What is the difference between coinsurance and out-of-pocket costs?

Coinsurance is a percentage of costs paid by the insured, while out-of-pocket costs include all expenses like deductibles, copays, and coinsurance.

How do governments use parametric insurance?

Governments use parametric insurance to cover large-scale disasters, such as earthquakes and hurricanes, ensuring rapid funding for emergency response and recovery. It is also used in sovereign risk programs to protect national economies from financial shocks due to natural catastrophes.

How do insurers use big data in underwriting?

Insurers analyze big data from sources like medical records, driving history, credit scores, and wearable devices to refine risk assessment and improve underwriting accuracy.