Whether you are new or vastly experienced in the insurance world as a customer, the question of how do companies come up with pricing for accepted insurable risk should have crossed your mind. Do they just whip out prices from thin air? What are the factors that determine such prices? Well, this is why underwriters […]
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Insurable interest – meaning, types, and importance
Insurance is basically the transfer of the risk of specific valuables, from one entity to another. The insured in turn pays the insurer, a premium periodically, depending on the policy. However, taking a more detailed look, you can only take up an insurance policy when you have an insurable interest. Therefore, an insurable interest is […]
Surrender value in insurance
The legitimacy of insurance is based on the fact that a contract binds a policy purchased. It is this contract that dictates the rules and regulations of an insurance policy. It governs the holder and the company itself. In a situation where the policy is voluntarily terminated before its maturity, the surrender value is what […]
Why do Insurance Premiums Increase?
An insurance premium is the amount of money you pay as an individual or business to get covered under an Insurance Policy. It is oftentimes calculated using a mathematical and statistical approach by the insurance carrier to determine how much to charge you. However, there are times when your insurance premium suddenly goes up for […]
Insurance Deductible vs Premium – What you should know
Virtually every human being has some sort of insurance policy covering him or her. Whether health insurance, auto insurance, or life insurance. Consequently, in the course of acquiring insurance, you are sure to encounter words like “Deductible” or “Premium”. It is important to gain adequate knowledge as regards these terms, hence the purpose of this […]
6 Types of insurance you need for retirement
One of the major stages of life that every worker patiently looks forward to is the Retirement stage. At this stage, everything changes. It is the stage where the heavy load of work, bulks of responsibilities, and endless stress is off your shoulders. You finally get to feel relieved and relaxed, having a long break […]
Insurance rights of subrogation – Meaning and how it works
The broad nature of insurance means that you could have different parties to consider in an insurance claim. This includes the insurer, the insured, and other third parties. As a result, sometimes damages might be incurred by the insured which, although covered in his policy, resulted from the recklessness of a third party. In such […]
Ex Gratia in Insurance Explained
It is a well-known fact that insurance companies only pay for what they cover in the policy contract. Therefore, you can damage your car, along with the engine, and not get cover for the engine because your policy isn’t broad enough. In situations like this, the insurer can stick to the legally binding document and […]
Insurance for riots and looting – Does insurance cover riots and looting?
Individuals purchase insurance policies because they intend to transfer the risk associated with certain assets. Hence, there are common policies like business insurance, auto insurance, home, and personal insurance. However, it becomes unclear for business individuals in knowing what specifics your policy covers, as in this case, insurance for riots looting. This is the one […]
Who is an Actuary? All you should know about them
Risk is an inseparable element in our lives and in the world. Ever since the dawn of civilization, risk management had become a necessity. Innovators attempted to develop a scientific risk management scheme. Finally, in the 17th Century, they had a breakthrough and they presented us with Actuaries. Actuaries function in all sectors and aspects […]