say something about recent developments in insurance?

Question

i need a brief information coz i have to make project so....if any body can

Answer 1

Insurance rates (what you pay) are determined by actuaries, who are professional statistic gatherers basically. They look at the frequency of claims in the past, & their severity (how much was paid).

They study a broad spectrum of criteria including geographic location, likelihood of catastrophic weather events based upon past experience, what is covered & what isn't ( for instance homeowners ins does not cover flood damage, that's a separate policy) They also factor in possibility of fire, lightning , vandalism, hail, theft , & another dozen or so things that happen often enough to be statistically viable.

After arriving at an amount that may be expected to be paid in claims they add on another 10% to allow for the agent's commission, & another 10% to allow for the expense of the company in issuing policies, paying adjusters, & other needed support employees.

Then they factor in about 5% more to allow for a profit for the company. That number becomes the premium charged for the insurance.

Recently courts have decided the coverage in home owners policies may be interpretted in a broader way than was anticipated, resulting in much higher payouts on claims.

Bottomline ;the company has now paid out far more than they brought in thru premiums collected, so an increase in the cost of insurance has to happen or the insurance company would not have money to pay future claims.

That;s just one recent development, but it is the biggest....courts deciding to expand the coverage on policues.

Answer 2

There are ALWAYS recent developments in insurance, due to legislative changes, judicial decisions, catastrophic losses that spring up, and the free market in general.