FBSRe :Articles by: Adam Smith
CategoriesInsurance Reinsurance
byAdam Smith

Insurability of Agricultural Risks

 

Insurability of Agricultural Risks

Agricultural insurance covers systemic risks such as drought, cyclone, epidemic diseases and wildfires, which have the potential to cause large-scale losses and make risk trans-fer for insurers to reinsurance and capital markets a necessity. Further, loss distributions of agricultural risks are often non-stationary and require special statistical treatment. Adverse selection has been a key issue in agricultural insurance and has been addressed through government premium subsidies to increase the affordability and penetration of  insurance,  improved  methods  to  determine  premium  rates  through  risk  classifica-tion, and the introduction of waiting periods before covers incept. Moral hazard is typically addressed through loss-sharing structures, increased monitoring and multi-year policies Read more “Insurability of Agricultural Risks”

CategoriesInsurance Marketing Reinsurance
byAdam Smith

The Risk of non-access to Data or Prohibition of Use

The risk of non-access to data or prohibition of use In today’s big data world, for insurers, access to the data of policyholders is not as natural as it seems. In the case of distribution by brokers, the client is that of the broker and not of the insurer. Multichannel distribution complicates organization. As policyholders are increasingly mobile, one policyholder can be client of the insurer by underwriting with an employee of the insurer or, for another risk, client of a broker. It is difficult for the insurer to consolidate all this information: data governance is an issue of real importance. Moreover, regulatory changes, which aim at protecting consumers, fall in line with a restriction of the choice of pricing criteria, notably for nondiscriminatory reasons. Read more “The Risk of non-access to Data or Prohibition of Use”

CategoriesConsultancy Insurance Insurance Statistics Marketing Reinsurance
byAdam Smith

Six Mega-trends that Will Take Insurance Back to the Future

Adopted strictly for illustrative purposes by Intelscape Limited during web design. Copyright belongs to owner.

Six Mega-trends that Will Take Insurance Back to the Future

By Susanne Møllegaard

CEO and Co-Owner, Process Factory

The insurance industry started out as a safety net among peers. Over time the help has become organized, leading first to mutual insurance companies and later to stock insurance companies. As much as this development has led to a greater degree of professionalism, it has also led to a kind of alienation. Furthermore, there is a problem with the basic structure of the insurance products, since the interests of the insurer and the insureds are not aligned. Broadly speaking, the insurer will be better off if premium levels are maximized and claims costs are minimized, whereas the opposite will be true for the insureds. Read more “Six Mega-trends that Will Take Insurance Back to the Future”

CategoriesContracts Facultative Reinsurance Treaty
byAdam Smith

Elements of a Reinsurance Contract

This is for illustrative purposes only during web development. Adapted fully from The Law of Reinsurance by Colin Edelman QC, Andrew Burns.

  1. Elements of a Reinsurance Contract

2.01 A reinsurance contract is formed according to normal contractual principles. There needs to be an offer and an acceptance of that offer to form an agreement, with consideration for the bargain and an intention by the parties to create legal relations between them. The relationship between reinsurer and reinsured may be one of utmost good faith when concluding the contract, but the essential requirements for the formation of a contract are the same. Read more “Elements of a Reinsurance Contract”