Are there any special grace period rules for life insurance?

Life insurance policies typically have a 30- or 31-day grace period. Some policies may also offer an automatic premium loan feature, which deducts unpaid premiums from the policy’s cash value if available.

What is parametric insurance for climate disasters?

Parametric insurance pays policyholders based on predefined disaster conditions (e.g., wind speed, earthquake magnitude) rather than assessed property damage, providing faster financial relief.

How does Brexit impact international insurance laws?

Brexit has led to regulatory divergence between the UK and EU, affecting passporting rights for insurers. UK-based insurers must now comply with separate EU regulations, and vice versa. Many have set up subsidiaries in EU jurisdictions to maintain operations, and cross-border agreements continue to evolve.

Can older pets get accident-only insurance?

Yes, many providers offer accident-only plans for senior pets. Unlike illness coverage, which may have age restrictions, accident-only plans are often available regardless of age.

How does the waiting period affect maternity insurance?

Maternity insurance often has a waiting period of 9 to 12 months, meaning pregnancy-related expenses are covered only after this period ends.

Can a loss ratio be too low?

Yes, an excessively low loss ratio (below 40%) may indicate that premiums are too high, leading to overpricing and potential loss of customers. It may also suggest that the insurer is denying too many claims, which could harm its reputation and lead to regulatory intervention.

What is enterprise risk management (ERM), and how do actuaries contribute?

Enterprise risk management (ERM) is a framework for identifying, assessing, and managing risks across an organization. Actuaries play a key role by quantifying financial risks and developing mitigation strategies.

What is the FCA’s stance on unfair insurance policies?

The FCA investigates and prevents misleading terms, hidden fees, and unfair exclusions that negatively impact policyholders’ rights and coverage.