Property Damage & Disaster Restoration Blog: Long Island & New York City

Risk Management, Modeling Helped Reinsurance Industry in 2011

Posted on Tue, Apr 24, 2012 @ 11:59 AM

business insurance,risk management,insurance,long island insurance,reinsurance,new york insurance,long island insurance agentIncreasingly sophisticated risk management and modeling techniques helped the reinsurance sector weather near-record catastrophe losses in 2011, according to a report released Monday by Oldwick, N.J.-based A.M. Best Co.

The “Global Reinsurance Financial Review” notes that while the numerous loss events of 2011 cost the insurance industry approximately $110 billion in losses, the reinsurance market has seen only a minimal squeeze on capacity.

“It is reasonable to ask why the market did not turn more broadly, considering all that 2011 offered: significant catastrophe losses, record low investment yields, uncertain financial markets and the downgrade of U.S. sovereign debt,” the report states. “The simple answer is that reinsurance capacity remained ample despite the magnitude of losses and unrelenting headwinds.”

Several factors cited

The report credits several factors to this resilience. One factor is a continuing evolution in enterprise risk management. The industry invested heavily in ERM initiatives in the wake of Hurricanes Katrina, Rita and Wilma in 2005, the report states.

Another factor helping the industry has been advances in catastrophe and economic capital models. A.M. Best said. “These tools significantly helped a reinsurer's ability to better allocate capital within complex risk portfolios,” the report states. “The models, while not perfect, helped keep both individual and cumulative losses in 2011 within stated risk tolerances for most of the global reinsurers.”

Additionally, reinsurers have adopted conservative capital management strategies in response to new pressures coming from regulators and rating agencies.

Increasingly sophisticated risk management and modeling techniques helped the reinsurance sector weather near-record catastrophe losses in 2011, according to a report released Monday by Oldwick, N.J.-based A.M. Best Co.

The “Global Reinsurance Financial Review” notes that while the numerous loss events of 2011 cost the insurance industry approximately $110 billion in losses, the reinsurance market has seen only a minimal squeeze on capacity.“It is reasonable to ask why the market did not turn more broadly, considering all that 2011 offered: significant...

Bill Kenealy

Article originally published on BusinessInsurance.com

                                   April 23, 2012 - 1:42pm

 

Tags: long island, business insurance, risk managemetn, insurance, new york, insurance agent, reinsurance

What is an Insurance Claim? by WiseGEEK.com

Posted on Thu, Feb 23, 2012 @ 01:32 PM

insurance, insurance claim, insurance claims,property damage,disaster,restoration,long island,new york,insurance agent,property damage claim

An insurance claim is the actual application for benefits provided by an insurance company. Policy holders must first file an insurance claim before any money can be disbursed to the hospital or repair shop or other contracted service. The insurance company may or may not approve the claim, based on their own assessment of the circumstances.

Individuals who take out home, life, health, or automobile insurance policies must maintain regular payments called premiums to the insurers. Most of the time these premiums are used to settle another person's insurance claim or to build up the available assets of the insurance company. But occasionally an accident will happen which causes real financial damage, such as a automobile wreck or a tornado or a work-related accident. At this point the injured policy holder has the right to file an insurance claim in order to receive money from the insurance company.

In general, the insurance claim is filed with a local representative of the insurance company. This agent becomes responsible for investigating the specific details of the insurance claim and negotiating the payment from the main insurers. Many times a recognized authority (doctor, repair shop, building contractor) can file the necessary insurance claim forms directly with the insurance company. However, sometimes the policy holder may not want to file an actual insurance claim if the damage is minor or another party has agreed to pay out-of-pocket for their mistake.

After an insurance claim is filed, the insurance company may send out an investigator called an adjustor or appraiser. The insurance adjustor's job is to objectively evaluate the insurance claim and determine if the repair estimates are reasonable. This is to prevent possible fraud by contractors who may inflate their bills for additional compensation. Insurance companies tend to accept the adjustor or appraiser's evaluation as the final word on the insurance claim.

Some insurance claims may not be recognized by the insurance company for any number of reasons. If a claimant's premiums have not been paid in full, the policy itself may not be active. Another insurance company may have already agreed to pay for the damages listed in the claim. This happens quite often in automobile accidents where one party is held responsible. Another reason an insurance claim may be rejected is a failure to fall under covered conditions. Most insurance policies spell out specific areas which qualify for benefits. If the accident or damage claim was caused by carelessness or an unavoidable "Act of God", the insurance company has the right to withhold payments.

An insurance claim is the only way to officially apply for benefits under an insurance policy, but until the insurance company has assessed the situation it will remain only a claim, not a pay-out.

Tags: disaster, long island, property damage, insurance claims, insurance, new york, insurance agent, insurance claim, restoration, property damage claim

Insurance Journal