How does Lloyd’s of London innovate within the insurance industry?

Lloyd’s is at the forefront of insurance innovation, adopting new technologies like blockchain, artificial intelligence, and big data analytics to improve underwriting accuracy, streamline claims processing, and enhance customer experience. It has also pioneered the use of parametric insurance models and other new approaches.

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Can small-scale farmers get livestock insurance?

Yes, insurance providers offer plans for small-scale farmers, covering a few animals or small herds. Some government programs also provide subsidies for smallholder livestock insurance.

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What is additional living expenses (ALE) coverage?

ALE covers temporary housing and living costs if a home becomes uninhabitable due to a covered event, such as a fire or storm.

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Can subrogation apply in cases of shared fault?

Yes, subrogation can still apply in cases of shared fault, though the recovery amount may be reduced. Many jurisdictions use comparative negligence rules, meaning insurers can only recover a portion of the loss proportional to the other party’s degree of fault.

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What is a disappearing deductible?

A disappearing (or vanishing) deductible decreases over time as the policyholder maintains a claim-free record, rewarding safe driving or responsible homeownership with lower out-of-pocket costs.

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What is the significance of smart contracts in blockchain?

Smart contracts are self-executing agreements stored on blockchain, automating transactions when predefined conditions are met, reducing human intervention.

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What is the role of reinsurance in managing adverse selection?

Reinsurance helps insurers manage high-risk portfolios by transferring part of the risk to reinsurers. This allows primary insurers to remain financially stable despite the presence of adverse selection in their policyholders' pool.

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Will travel insurance cover me if I get sick or injured on a business trip?

Yes, travel medical insurance applies to both business and leisure trips. If you fall ill or suffer an injury during a business trip, your insurance will cover medical treatment, hospital expenses, and possibly medical evacuation, depending on your policy.

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