Will my insurance rates go up after an accident?

Yes, your rates may increase after an accident, especially if you are at fault. Insurance companies often raise premiums to reflect the higher risk posed by drivers who have a history of accidents.

What is basis risk in parametric insurance?

Basis risk occurs when a policyholder experiences losses but does not receive a payout because the event did not meet the predefined trigger, or when a payout is made despite minimal losses.

What types of businesses use captive insurance?

Large corporations, healthcare providers, manufacturers, and industries with high insurance costs often use captive insurance for risk management.

How does Lloyd’s approach climate change risks?

Lloyd’s has introduced climate change risk models and policies for businesses affected by extreme weather, flooding, and wildfires. It also promotes sustainable investment strategies and supports global efforts to mitigate environmental damage.

What is livestock insurance?

Livestock insurance provides financial protection to farmers and ranchers against losses due to disease, accidents, theft, natural disasters, or other unforeseen events affecting animals.

How is the payout amount determined in a business interruption claim?

The payout is based on the business’s past financial records, including revenue, expenses, and profit margins. Insurers calculate how much income the business would have earned had the interruption not occurred, along with the costs needed to maintain operations.

How do solvency requirements differ between life and property insurance companies?

Life insurers require higher solvency margins due to long-term policy commitments, while property insurers face fluctuating risks from natural disasters. Regulatory requirements vary based on the type of risks each insurer handles.

How does a higher deductible affect my premium?

A higher deductible usually lowers your premium because you're assuming more financial responsibility before the insurer starts paying. It’s a trade-off between higher out-of-pocket costs and lower premiums.