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Most people glance at their insurance statement, check the total due, and move on. But buried in those lines of text are often hidden costs that could be quietly draining …
Hidden Costs in Your Insurance Statement You Might Be Overlooking Read MoreA trend where the costs associated with claims increase over time due to factors beyond general price inflation, such as larger jury awards in liability lawsuits, increased …
Claims Inflation (Social Inflation) Read MoreFor a risk to be generally insurable, it must typically meet criteria such as: the loss must be definable, measurable, accidental (not intentional), not catastrophic for the entire …
Insurability Criteria Read MoreThe legal process by which a mutual insurance company (owned by policyholders) converts into a stock insurance company (owned by shareholders). This is typically done to gain …
Demutualization Read MoreThe risk that the payout from a parametric policy does not perfectly align with the policyholder’s actual financial loss. The trigger might be met, but the insured …
Basis Risk in Parametric Insurance Read MoreThe risk that the payout from a parametric policy does not perfectly align with the policyholder’s actual financial loss. The trigger might be met, but the insured …
Basis Risk in Parametric Insurance Read MoreThe risk that the failure of one or a few large financial institutions (including very large insurers) could trigger a collapse of the entire financial system. Post-2008, …
Systemic Risk Read MoreSpecialized financial instruments that transfer a specific set of insured catastrophe risks (e.g., hurricanes, earthquakes) from an insurer or reinsurer to investors in the capital markets. They are …
Catastrophe Risk Bonds (Cat Bonds) Read MoreWhen was the last time you looked closely at your insurance statement?For many people, the answer is “not recently.” Yet, this simple document can protect you from serious financial surprises. …
Why You Should Review Your Insurance Statement Every Year Read MoreWhen you receive your insurance statement, it might look like a pile of numbers and terms — but it’s actually one of the most important documents for managing your financial …
Understanding Your Insurance Statement: What It Really Tells You Read More