While both indemnity and insurance are ways to manage risk and avoid financial losses, what makes them different is the way they undertake risk. This article is going to focus on how indemnity and insurance work together for risk management. What is Indemnity? According to Investopedia “Indemnity is a comprehensive form of insurance compensation for damages or loss. When the term indemnity is used in theRead more
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Captive Insurance is another way to protect your organization against financial risk. With Captive Insurance, the ‘insurance company’ that provides coverage is owned by the insured. That means that the insurer who owns the risk, also owns the insurance company who does the captive coverage. This Insurance Company -created to create the captive insurance policy- is subjected to the same regulations as any other insurance company and needs to have CapitalRead more
What is improvements and betterments insurance? “Improvements and Betterments refers to upgrades done by a business owner to a property that is rented from a landlord. According to IRMI, the International Risk Management Insitute improvements and betterments are “permanent additions or changes made to a building by a lessee at his or her own expense that may not legally be removed.” These improvements andRead more
What is an insurance endorsement? Sometimes the terms, scopes, or people involved in an insurance policy need to be changed. Since drafting a new policy would be time-consuming there is a mechanism that allows brokers to ‘correct’ policies. An insurance endorsement is an amendment or addition to an existing contract. It can change the terms or scope of the originalRead more
Risk assessment and the approach you take on challenges, are two fundamental aspects of a cybersecurity plan. It may sound complicated, but it does not require any specific equipment to create a plan. You only need a few documents, trustable data about your own company, and a lot of drive from yourself and employees to put the planRead more
Being informed on cyber security is a subject all companies should be ready to address. It is an important matter that focuses on protecting your companies’ digital assets. Cybercrime is on the rise and industry regulatory organizations are setting up bigger fines for violations of privacy, unsafe data sharing, and data storage solutions that feel like a liability. A single incident could cost millions of dollars. For many small- to medium-sized business owners, that means it could end your business. Read more
The insurance industry has been undergoing changes in the 21st century. Along with a majority of other industries in products and services, it had to adapt to a new landscape: a digital world, with a digital cloud over it, oceans of data, and an increased reliance on what can be done remotely. The digital landscape is where insurers struggle while others are able to thrive. That is the reasonRead more
After the COVID-19 pandemic and the subsequent move from offices to virtual work environments, employers have started paying serious attention to cyber security. According to the Report “Cost of a Data Breach” from IBM, during 2020 the average cost of a data breach was 3.86 million dollars. More specifically, in the health care industry theRead more
Reinsurance is defined as insurance for insurers. It works by insurers transferring portions of their risk portfolios to other insurers in some form of agreement. The insurer that “buys” risk, or that “reinsures” an insurance policy is known as the “ceding” party. The party that accepts that part of the risk is the reinsurer. The Insitute of Insurance Information cites the Reinsurance Association of AmericaRead more
There is a part of the insurance industry, Insuretech, that contrary to the industry as a whole firmly says, “We embrace change.” Both In their own internal channels –blogs, websites, forums- and in their external actions. While a traditional broker may still be on the phone, Insurance technologists are ready to give fresh solutions a go. This adaptability is making insurance policies easier to manage. The reality, especially after COVID– 19 is that Insuretech has provided solutions that were not expected to surface for years to come. Although theseRead more
