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The process of choosing which risks to insure, and determining premiums, is known as underwriting. This is the most complicated part of insurance, and uses statistical techniques and probability to estimate future losses and their relative severity. An insurer can use this data to set rates for their products and determine the appropriate premiums and …
Continue reading “An Overview of the Underwriting Process in Insurance”
Insurance is a contract between an insurer and an insured. The insurer pays the policyholder a premium that assures that the company will pay for the insured’s losses. The amount of the premium is what determines how much the insurance policyholder can be reimbursed for a loss. The insurance policy also includes a deductible. This …
Insurance is a type of risk management. It is a tool for managing risks, principally the risks of contingent or uncertain loss. A company can purchase various policies that provide a range of protection. However, this is only possible if the company can afford to pay a premium on a policy. There are a variety …