In some cases these two terms are used interchangeably. They are both designed to give an actuarial measure of the risk that an insurer faces on a policy. They are both commonly used with respect to real estate insurance and in particular to fire risks. Yet they are slightly different and you need to use…
This isn’t as complex as it might sound. Firstly; it’s probably a good idea to define what an actuarial reserve actually is. So: An actuarial reserve is used to account for the amount of money that an insurance company will be liable to pay (in the event of a claim) based on an estimate of…
A while back we ran a series on making good use of social media for your insurance brokerage. Today we’d like to take a look at another way of improving your online presence – press releases. Our sister blog recently asked the question; “Why aren’t there more positive stories about the insurance industry?” that’s because…
As part of our ongoing insurance glossary series we continue to explore the terminology and practices used in the Insurance world. Today we will be looking at Estimated Maximum Loss as follows: What does Estimated Maximum Loss mean ? What factors effect Estimated Maximum Loss ? How do Insurers use Estimated Maximum Loss to control…
As part of our ongoing insurance how-to we continue to explore the terminology and practices used in the Insurance world. Today we will be looking at The Average Condition and will explore ; What is an Average Condition ? Example of Average applying to a Claim Special Condition of Average – 75% Why do Insurers…
As part of our ongoing insurance how-to series we continue to explore the terminology and practices used in the Insurance world. Today we will be looking at Operating Ratio and will explore: What is an Operating Ratio? How do you calculate an Operating Ratio? How can an Operating Ratio help me with my business? What…
As part of our ongoing insurance how-to series we continue to explore the terminology and practices used in the Insurance world. Today we’ll be explaining Lapse Ratio, how it is used and the effects is has, giving examples and calculations. (If you haven’t already, you may also like to see our articles on Claims Loss…
As part of our ongoing insurance how-to series we continue to explore the terminology and practices used in the Insurance world. Today we’ll be explaining Claims Deductions; we’ll break down the Claims Excesses and Claims Franchises that are applied by Insurers and explain why they use them. We will explore: What is an Excess and…
