What happens if I don’t have enough liability coverage?

If your liability coverage isn’t sufficient to cover the damages or injuries caused in an accident, you could be personally liable for the remaining costs, including legal fees. This could result in financial hardship or asset loss.

How does parametric insurance differ from traditional insurance?

Unlike traditional insurance, which compensates for actual losses after claim assessments, parametric insurance pays a fixed amount when a predefined event threshold is met, regardless of actual damages.

What is the role of decentralized identity in insurance?

Decentralized identity on blockchain allows policyholders to securely manage and share personal data without intermediaries, enhancing privacy.

What role does Lloyd’s play in modern insurance markets?

Lloyd’s is a global leader in specialty and reinsurance markets, offering coverage for emerging risks such as cyber threats, climate change-related damages, and space exploration. It continues to innovate in the insurance industry.

Is there government support for agricultural weather insurance?

In many countries, governments offer subsidies or support programs to help farmers afford agricultural weather insurance premiums, particularly in regions prone to extreme weather events.

What is an Experience Modification Rate (EMR), and how does it impact premiums?

The Experience Modification Rate (EMR) is a numerical rating that reflects a business's past Workers' Compensation claims history. An EMR of 1.0 is average, while a lower number indicates fewer claims and can reduce premiums. Businesses with high claims may face higher premiums due to increased risk.

How often do insurers report their solvency ratios?

Insurers typically report solvency ratios quarterly or annually as part of their financial disclosures. Regulatory bodies require periodic reporting to monitor insurers’ financial health and ensure they maintain adequate capital reserves.

What happens if I don’t meet my deductible?

If you don't meet your deductible, the insurance company will not cover any expenses. You must pay the deductible amount before the insurer contributes to the costs.