What is the role of underwriting in insurance risk management?

Underwriting is the process by which insurers evaluate risk and determine the terms, conditions, and premiums for coverage. It involves analyzing applicant information, assessing potential claims probability, and ensuring that the insurer maintains financial sustainability while providing adequate protection.

What is product liability insurance?

Product liability insurance covers legal costs and damages if your business manufactures, distributes, or sells products that cause injury or property damage.

How does catastrophe treaty reinsurance work?

It provides coverage when large-scale disasters like earthquakes or hurricanes cause severe losses across multiple insured policies.

How is indemnity calculated?

Indemnity is calculated based on the actual financial loss suffered, determined by factors such as market value, depreciation, repair costs, and policy terms. The insurer ensures that the payout does not exceed the insured’s pre-loss financial position.

How are insurance premiums calculated?

Premiums are calculated based on factors like age, health, coverage amount, policy type, risk profile, location, and insurer-specific underwriting guidelines.

How does the FCA ensure insurance firms handle claims fairly?

The FCA enforces rules requiring insurers to process claims efficiently, communicate clearly, and avoid unfair delays or denials. It reviews complaints, investigates claims handling practices, and can impose penalties for unethical behavior.

Is Professional Liability Insurance required by law?

It’s not always required by law, but certain industries, like healthcare or law, may have regulatory or licensing requirements that mandate having Professional Liability Insurance.

How does whole life insurance work?

The policyholder pays fixed premiums, part of which goes toward coverage while the rest accumulates as cash value over time.