What is subrogation in claim adjustment?

Subrogation occurs when an insurer seeks reimbursement from a third party responsible for the loss after compensating the policyholder. For example, if another driver is at fault in an accident, the insurer may recover claim costs from their insurance provider.

Can I switch insurance brokers if I’m unhappy with my current one?

Yes, you can switch brokers at any time. If they manage your policy, you may need to sign a broker of record (BOR) letter to transfer your policy.

What risks does freight marine insurance cover?

It covers risks such as cargo loss, theft, damage due to rough seas, fire, piracy, natural disasters, and accidental mishandling.

How much flood insurance coverage do I need?

It depends on your home’s value and personal belongings. NFIP policies offer up to $250,000 for structure coverage and $100,000 for personal property, but you may need additional private coverage if your home is valued higher.

What is the difference between a primary insurer and a reinsurer?

A primary insurer is the company that directly sells insurance policies to customers, such as life, health, auto, or property insurance. A reinsurer, on the other hand, provides insurance to the primary insurer by assuming some of the risk associated with those policies. While the primary insurer deals directly with policyholders, the reinsurer typically operates behind the scenes to help manage large-scale risks.

What types of perils are covered under comprehensive insurance?

It typically covers theft, vandalism, fire, hail, floods, falling objects, animal damage, and natural disasters, depending on policy terms.

What is a catastrophe bond, and how does it relate to parametric insurance?

A catastrophe bond (cat bond) is a financial instrument that transfers disaster risks to investors. Many cat bonds use parametric triggers, meaning investors cover losses when a predefined event (e.g., an earthquake above 7.0 magnitude) occurs, providing funding for insurance payouts.

How often do insurance underwriting guidelines change?

Underwriting guidelines are periodically updated based on industry trends, regulatory changes, emerging risks, and advancements in data analytics and risk assessment techniques.