What is retrocession in reinsurance?

Retrocession is when a reinsurer transfers part of its risk to another reinsurer. This helps reinsurers manage their exposure to large losses, diversify their risk, and improve financial security. The company taking on the risk is known as the retrocessionaire.

Why is marine cargo insurance important?

Shipping involves risks like storms, piracy, theft, mishandling, and accidents. Marine cargo insurance helps businesses recover losses and continue operations without significant financial strain.

Can PPO plans cover preventive care services?

Yes, PPO plans often cover preventive care services, such as vaccinations, screenings, and wellness visits, sometimes at no extra cost to you.

What is non-proportional reinsurance?

Non-proportional reinsurance is a type of reinsurance where the reinsurer covers losses exceeding a specified threshold (retention limit). The reinsurer does not share premiums directly but steps in when claims surpass the predefined limit, offering financial protection for catastrophic events.

Why is the claim settlement ratio important?

A high claim settlement ratio reflects an insurer’s efficiency and trustworthiness in settling claims, helping policyholders choose a reliable company when purchasing insurance policies.

Can a TPA deny a claim?

While TPAs handle claims processing, they do not have the authority to deny claims. Claims denial decisions are made by the insurance company based on policy terms.

Are deductibles applicable to all insurance claims?

Deductibles apply to most insurance claims, but not all policies or claim types may require one. For example, some comprehensive auto insurance claims might have a deductible, while others might not.

Does earthquake insurance cover landslides and sinkholes?

Earthquake insurance may cover damage from landslides and sinkholes if directly caused by an earthquake, but coverage varies by policy and provider.