What is a no-claims bonus, and how does it affect my premium?

A no-claims bonus (NCB) is a discount on your insurance premium offered for not filing claims over a certain period. The longer you go without filing a claim, the bigger the discount you may receive, helping you lower your overall premium cost.

What is earthquake insurance?

Earthquake insurance is a separate policy or an endorsement to a homeowners insurance policy that covers damages to your home and belongings caused by an earthquake.

Is UBI only available for car insurance?

While most common in auto insurance, UBI can also apply to other types of insurance, such as health insurance, where premiums are based on real-time activity.

How does claims handling work in facultative reinsurance?

When a claim arises, the ceding insurer manages the claim process but consults the reinsurer for approval if necessary. The reinsurer reimburses its share of the claim based on the agreed terms in the facultative agreement.

How is parametric insurance regulated?

Regulation varies by country but typically involves compliance with insurance laws, data transparency, fair pricing, and ensuring triggers are objectively measurable.

What role does the World Trade Organization (WTO) play in international insurance?

The WTO facilitates international trade agreements, including those covering insurance services. The General Agreement on Trade in Services (GATS) allows insurers to operate in multiple countries under agreed-upon conditions, promoting fair competition and reducing barriers to entry in foreign insurance markets.

Can I purchase long-term disability insurance independently?

Yes, you can buy an individual LTD policy, which offers more flexibility and stays with you even if you change jobs, unlike employer-provided plans that end when you leave.

Are UBI premiums more variable than traditional premiums?

Yes, UBI premiums can be more variable since they depend on real-time driving behavior. A driver’s premium may change month-to-month based on their driving patterns.