Daily Archives: March 20, 2020

Archive of posts published in the specified Day

Mar
20

Insurance Score – What It Is, How It Affects Your Auto Insurance Rates and How to Make It Serve You

Do you understand what your insurance score is? Do you also know factors affecting it? What about how it is being used to determine your rate? If yes, do you also know how to adjust it to your satisfaction? If not, why not.

But before we proceed, let’s take a look at the term…

Due to the information extracted from the insurance information institute, it is defined as a numerical rank given to a person depending on his or her credit history.

According to insurers, individuals who lack good credit history are likely to file up claims more often. This in particular should give you reason why you would enjoy cheaper rate if you maintain good credit history. And we can also say, for one to enjoy a more cheaper rate, one need to take some steps in order to enjoy more favorable rate.

Listed below are steps on how to achieve a good credit rating.

-Always pay your bills at the appropriate time. Apart from the fact that you will pay more interest, failure to do this will affect your credit score negatively.

-Always re-check, double check and even triple check to correct any available errors.

-Try hard not to make use of too much credit cards.

-At any point in time, do not exhaust your credit card. Try as much as possible not to spend more than 30%.

Now, what else do you think you could do to enable you save on insurance rates?

The fact is that, most insurers do use your credit score to determine your rate, which if bad, will cause increase in rate. But keep in mind that you will get different quote from different insurers. Therefore, to enjoy favorable rates, it is highly advisable to compare quotes online in order to select a more suitable one.…

Mar
20

Reinsurance Jobs – The Basics of the Insurance Industry

If you are financially minded but unfamiliar with what a reinsurance job might entail we've compiled four reasons why companies carry out reinsurance and the two main different types of reinsurance.

Four Reasons for Reinsurance

Risk Transfer – you only have to look at the amount of money an insurance company would have to pay out if your house was damaged in a natural disaster to realize how there is the potential for them to have huge costs. By reinsuring themselves with other insurers they are able to spread the risk so that no matter how many of their policy are claimed upon they have the ability to pay out.

Income Balancing – for any large company its important they can predict their income for cash flow and often shareholder benefits. As you can imagine this would be difficult for insurance companies if they were not reinsuring. A number of big payouts if they were not reinsured could have a very significant effect on their bottom line. By reinsuring they are able to manage this risk more effectively.

mproved Surplus – on the balance sheet of a company it's good to have a surplus. This is the sum of assets minus liabilities. Successful reinsurance can reduce the liability pushing up the surplus level upwards. It is desirable as it makes the company more financial stable and more attractive to potential investors.

Arbitrage – another reason reinsurance is often popular is due to arbitrage. If you are not familiar with arbitrage in simple terms it is where you sell something at a high cost which you then buy at a low cost. In reinsurance this would be where a company sells you insurance at one price yet is able to insure that same risk at a lower cost from another supplier. This is of course hugely appealing to insurance companies and fuels some of reinsurance popularity.

Two Types of Reinsurance

Proportional – this type of reinsurance is often known as quote share insurance. If companies are entering into a proportional reinsurance arrangement they divide the risk up as a percentage. Assuming insurance company alpha reinsures 50% of my house insurance with insurance company beta, if I then make a claim both companies would pay their percentage of the settlement. The agreement does not have to be with just two companies, it is possible for several companies all insuring the same risk sometimes with different percentages.

Non-Proportional – this system works in slightly different way. Assuming I felt on any policy I could only pay out a £ 1000 but there is a reasonably hood that the risk could require more coverage I could get reinsurance for £ 9k. If this even then takes place and costs £ 5 thousand I can then recover £ 4k from the reinsurance company. …