How is basis risk managed in parametric insurance?

Basis risk is managed by carefully designing trigger thresholds that closely align with historical loss patterns. Advances in data analytics and AI help refine risk models, while hybrid approaches—combining parametric triggers with traditional indemnity policies—can reduce the discrepancy between payouts and actual losses.

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What is a contingent beneficiary?

A contingent beneficiary is a secondary beneficiary designated to receive the policy proceeds if the primary beneficiary is deceased or cannot be located at the time of the claim.

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How do I file a claim under my business liability insurance?

Notify your insurer, document the incident, collect witness statements, and provide necessary information to start the claims process.

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Is Universal Life Insurance a good investment?

While UL policies offer investment potential, they are primarily an insurance product, not an investment vehicle. They provide financial protection and tax advantages but may not yield the same returns as traditional investment accounts. Suitability depends on individual financial goals and risk tolerance.

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What is a morale hazard in insurance?

A morale hazard arises when a policyholder becomes careless or indifferent about risk because they have insurance coverage, such as neglecting home maintenance or leaving doors unlocked.

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Where can gig workers find insurance providers?

They can explore options through private insurers, state exchanges, freelancer associations, professional groups, and gig platform partnerships.

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How does IRDAI promote financial inclusion in the insurance sector?

IRDAI promotes financial inclusion by encouraging the development of microinsurance products, relaxing licensing norms for rural and social sector insurance, and supporting digital initiatives like e-KYC and mobile-based insurance solutions to expand insurance reach in underserved areas.

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What happens if my pet gets hit by a car?

Your accident insurance will cover emergency care, diagnostic tests, surgeries, and rehabilitation costs needed for recovery, minus your deductible and copay.

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