What is an arbitration agreement?

An arbitration agreement is a contract where parties agree to resolve disputes through arbitration rather than court litigation. This alternative dispute resolution method is often faster and less expensive than traditional legal proceedings.

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What is the principle of indemnity in life insurance?

Life insurance does not strictly follow the indemnity principle because it pays a fixed sum, rather than compensating for a specific financial loss.

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Can businesses customize their cyber insurance policies?

Yes, cyber insurance policies can be customized based on business needs. Companies can choose coverage limits, add-on protections (such as cyber extortion coverage or reputational damage expenses), and adjust deductibles. Working with an insurer to assess specific risks ensures tailored coverage that aligns with industry requirements.

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Is private health insurance worth it?

It depends on personal needs and healthcare priorities. If you value faster access to specialists, private hospital care, and additional services, private health insurance is beneficial despite the added cost.

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What is considered a good loss ratio for insurers?

A good loss ratio depends on the type of insurance. Generally, a loss ratio between 60% and 80% is considered sustainable for most insurers.

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What should I do if my claim settlement is too low?

If you receive a low settlement offer, review the insurer’s explanation and compare it with your policy coverage. Gather additional evidence, such as repair estimates or independent assessments, and negotiate with the insurer. If unresolved, consider mediation, an independent adjuster, or legal action.

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How is reinsurance used in catastrophe risk management?

Reinsurance helps insurers manage catastrophe risk by transferring the financial burden of large-scale events (like natural disasters) to reinsurers. This ensures that the primary insurer can handle massive claims without jeopardizing financial stability.

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Does hull insurance cover total loss of a vessel?

Yes, it covers total loss due to sinking, fire, or severe damage, compensating the owner based on policy terms.

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