WinsurTech Blog | Insurance Concepts and Practical Solutions

When polices are downloaded from carriers (like through IVANS downloads, EBix Team-up Downloads or other 3rd party download applications) what should be done with each policy? Basically policy download actually means policy transactions download. Each downloaded record is a transaction related to a policy. For example policy Renewal (RWL – renewal of an existing policy), Non-Renewal (RWX – user decides to not to renew an existing policy), New Business Issue (NBS – new policy), Rewrite (REW – cancelling and rewriting an existing policy with modifications), Cancellation (XLC – cancel existing ongoing policy), Policy Change (PCH – endorsements or changes to an existing policy) or […]

Indemnity in insurance means in case the loss (financial or death) happens the insurer has to bring the state (in whole or part) of the insured back to what it was prior to the loss. Indemnity is the obligation that one party holds in paying compensation to another party that suffered losses. For example if a car accident happens insurer has to pay the car repair charges in part or whole according to the terms of car insurance policy. In case of life insurance if the insured dies, insurance company has to indemnify the family of insured with life insurance […]

Insurable interest means if the person who wants insurance to be done has any interest in the item being insured or not. For example a human being has natural interest in own life and health (mostly), similarly he has financial interest in his property and car, he has interest in his loved ones and in his business.Therefore it makes sense for the person to insure his own life and health, his property, car, to buy life and health cover for his loved ones and business. An insurance company (carrier like Travelers, Metlife, State Farm, Safeco) wants to insure only […]

Law of Large Numbers is the basis for successfully running Insurance Business. If historical data is collected for several years for life insurance for example and the information like how many people died during the policy, how many claims were made etc is available then it can be deduced that on average what is the percentage of claims that will possibly be made for an insurance policy (with certain deviation of course). On this basis cost can be calculated and premium amount can be decided. This same concept applies to Car insurance, property insurance, health and other types of insurance […]