Tuesday, August 12, 2014

Property and Casualty Insurance



The main difference between auto insurance and property and casualty insurance is that auto insurance merely covers vehicles, together with injuries and damages involving a vehicle. On the other hand, property and casualty insurance covers all types of property, from cars, homes, businesses and commercial buildings. It as well covers liability that may result from injuries or damages withstood on a policyholder's property or from the actions of an employee.

AXIS Capital, a group of companies with branch offices in Bermuda, Australia, Canada, Europe, Latin America, Singapore and the United States provides you a better understanding of what Property and Casualty Insurance is. The company also service SE Asian countries such as KL Malaysia, Bangkok Thailand, Jakarta Indonesia and many more.

What Property and Casualty Insurance Covers

Property and casualty insurance, similarly known as property casualty insurance and property liability insurance, covers businesses, homes and vehicles. In overall, the property factor of this insurance safeguards property against loss, counting loss of its income-generation capabilities. Coverage likewise comprises property restoration and replacement. The casualty component of this insurance protects the policyholder against lawful liability for injuries to a person or property. For an instance, a warning, if a person is hurt on your property because of your negligence, your property and casualty insurance would recompense for the person's injuries and any legal costs that may be caused by the incident. Insurance companies can often adapt property and casualty insurance to the requests of the policyholder. Always review your insurance coverage.

Property and Casualty Insurance Covers More

Dissimilar to auto insurance, property and casualty insurance is not limited to compensations from automobile-related events alone. Property insurance can cover everything from satellite dishes, signs and fences, landscaping, valuable papers and records, tools and other people's property in your care and control. Also, covered events that instigate property damage can consist of fire, theft, vandalism, riot, snow, windstorm, hail, water damage, falling objects, explosion, smoke, lightning and sinkholes. Casualty insurance covers complaints and lawsuits arising from the policyholder's, or their employees, negligence, damage to property of another or causing bodily injury. Casualty insurance characteristically doesn't cover liability resulting from out of such things as sexual harassment, race and gender discrimination or wrongful termination.

Related topic: Accident & Health

Sunday, July 27, 2014

Reinsurance: Protection for the companies that protect you



Everybody realizes the simple standard behind insurance. Individuals or groups lessen their financial risk by sharing their money with others who have a alike risk. When a loss happens, a big fund is available to balance it.

Likewise, insurance companies are challenged with the problem and complaints of how to make the law of great numbers work to their benefits. Many insurance companies use their reserves to offer an important source of revenue as investment income. Any unpredictably big loss would affect with that income stream, and having to pay the total amount of each claim could disturb the company’s ratings and even its capacity to maintain the business. Because of that, almost every big insurance company buys “reinsurance” coverage.

Reinsurance coverage supports to alleviate probable results, firming the primary insurer’s financial condition and guarding against catastrophic losses. In its simplest form, reinsurance, at times known as secondary insurance, insures the primary insurer for a ration of losses continued beyond a sure limit in exchange for a premium payment.

Reinsurance necessitates great amounts of money. Most risks necessitating secondary insurance are too vast for any one company to guarantee alone. Consequently, a worldwide marketplace has established to share these risks. Even though any insurance company can theoretically write reinsurance, a small group of companies— like Axis Capital, based in Bermuda with 29 branches worldwide dominates the reinsurance market.


Reinsurance rates are not structured but are negotiated. In 2010, primary insurance companies collected $861 billion in total premiums while reinsurance companies had total premiums of $96 billion in SE Asian countries like KL Malaysia, Beijing China, Singapore or Jakarta Indonesia alone. Reinsurance mediators help the primary insurers in attaining excellent, inexpensive reinsurance. With their comprehensive contact to reinsurance companies, intermediaries serve an important role in shopping the market for the most modest rates and negotiating reinsurance contracts. Characteristically, a reinsurance broker is compensated a percentage of the premiums to find willing reinsurers and help sell the rates and terms of the reinsurance policy.