Non-life insurance premiums grudge payment

Most insurance policies are issued on assumptions. The main purpose of the policy is to offer the client the best cover with the best premium. Ultimately the policy is considered to be a contract between the insurer and the client. The client pays premium, and the insurer provides cover in the event of a loss.

THE INSURER

The policy is issued by the insurer based on the comprehensive and accurate information received from the client.

The Insurer considers the unique risk profile when calculating the premium. Changes in the external environment, claims history, rising of inflation, the exchange rate, increased crime, and climate change are all factors that put pressure on their cost to insure the assets sustainably.

The risk must be properly understood, physically verified and technically validated

Renewals are done and the relationship between the broker / insurer and the client appears to be stable, and stability is taken as confirmation that everything is in order.

The risk is often not assessed to confirm the accuracy of the information received.

The client must comply to regulation.

WHAT THE INSURER DOESN'T KNOW WILL HURT YOU LATER

Underwriting is not optional. It is a fundamental part of how insurance functions, and it will always take place. The only question is whether it happens before the loss, or during the claim.

Risk requirements are essential to create peace of mind.

THE CLIENT

The responsibility lies with the client to declare all available information to the insurer

The risk must be explained with possible hazards

Claims history is of utmost importance.

Be aware of false comfort

The premises, the protections, and the operational exposures may appear acceptable, but they have never been aligned with the insurer's actual requirements.

Understand the insurance offered to prevent issues that could be raised be raised, and the process of placing cover and entertaining claims will remain smooth and uncomplicated.

Resolve uncertainties

Any required improvements must be identified and implemented. The risk must be structured to align with the insurer's expectations

CLAIM STAGE

A client pays premium with the expectation that the risk has been understood, accepted, and structured in a way that will respond when required.

That expectation only holds when the underlying risk has been physically assessed and aligned with the insurer's standards.

The policy wording applies. These unresolved positions exist between what has been declared and what has been physically verified. As per previous communication, unfortunately the risk assessment is often only done at claim stage. The safest position for any business is not to wait for that moment. It is to ensure, long before a loss a loss occurs, that the risk has been properly understood, physically assessed, and validated against the insurer's expectations.

The real value of insurance is not determined when the policy is issued, it is determined when it is relied upon completely. The safest policy is not the one that has simply been issued.