What is an insurance adjuster?

An insurance adjuster is a professional who investigates and assesses claims to determine the extent of the insurer's liability. Adjusters review evidence, inspect property damage, interview witnesses, and negotiate settlements. They work for the insurer, but some policyholders may hire independent adjusters for a second opinion.

How does reinsurance work in the insurance industry?

Reinsurance allows insurers to offload risk to other companies. In return for a premium, reinsurers assume part of the financial risk for the insurance policies written by the original insurer. This helps spread risk and ensure financial stability.

What is the role of the Institute Cargo Clauses in marine insurance?

Institute Cargo Clauses (A, B, C) define coverage levels for marine cargo insurance, with Clause A offering the broadest protection.

Does homeowners liability insurance cover lawsuits?

Yes, liability coverage helps pay for legal fees, settlements, and court judgments if you are sued for bodily injury or property damage caused by you, your family members, or your pets.

Why do insurance companies use reinsurance?

Insurers use reinsurance to protect against major financial losses, stabilize their balance sheets, expand underwriting capacity, and manage risks associated with catastrophic events or large claims.

What is the difference between CSR and Claim Rejection Ratio?

CSR measures approved claims, while the Claim Rejection Ratio represents the percentage of claims denied by the insurer.

What are the limitations of on-demand insurance?

Limitations include potential higher costs for frequent users, limited availability for some risk categories, and fewer long-term benefits such as no-claim bonuses or accumulated coverage. Additionally, not all insurers offer on-demand products, restricting choices in some regions.

Is a lower premium plan always better if it has high coinsurance?

Not necessarily. A lower premium plan with high coinsurance may result in higher overall costs if frequent medical care or expensive treatments are needed.