What is reinsurance? Reinsurance is a complex financial arrangement that plays a fundamental role in the global insurance industry. At its core, reinsurance is a mechanism through which insurance companies transfer a portion of their own risks and liabilities to other insurance companies, known as reinsurers. In other words, it’s insurance for insurers. The primary purpose of reinsurance is to help insurance companies manage their exposure to large and unexpected losses, such as those caused by natural disasters, catastrophic events, or an unusually high number of claims. By ceding some of the ..read more

What is Facultative Reinsurance? Facultative reinsurance is a type of reinsurance that is designed to cover specific risks that cannot be covered by traditional reinsurance policies. It allows insurers to transfer a particular risk to a reinsurer, reducing their exposure to potential losses. Facultative reinsurance policies are highly customizable and are negotiated separately between the insurer and the reinsurer. This enables insurers to tailor the coverage to their specific needs, which can be more cost-effective than purchasing a broader insurance policy or self-insuring. While facultative ..read more

What Is Reinsurance? Reinsurance is a critical component of the insurance industry that provides insurers with an extra layer of protection. In simple terms, it is insurance for insurance companies. But why do insurers need reinsurance? The answer lies in managing risk. Insurance companies are in the business of assuming risks and providing coverage to policyholders. However, they face the potential of incurring substantial losses, especially in the case of catastrophic events or a high volume of claims. Reinsurance allows insurers to transfer a portion of these risks to reinsurers, who specia ..read more

Reinsurance and Its Role in the Insurance Industry Reinsurance is an integral part of the insurance industry, playing a crucial role in managing risk and ensuring the stability and sustainability of insurance operations. It serves as a risk management tool that allows insurance companies to transfer a portion of their risks to other insurers, known as reinsurers. By doing so, insurers can protect themselves from large or catastrophic losses, enhance their financial capacity, and expand their underwriting capabilities. Related Blog: What is Reinsurance: Types, Functions, How it Works, Advantage ..read more

What Is A Short-Term Investment? A short-term investment is a financial product or security that is expected to be held for a year or less. These types of investments generally offer lower returns compared to long-term investments, but they provide more liquidity and are less risky. Examples of short-term investments include savings accounts, money market funds, government bonds, and certificates of deposit (CDs). What Are The Short Term Investment Options In India In India, the following are some of the short-term investment options: Savings Accounts: A low-risk option offering a small amoun ..read more

What is Post Office Monthly Income Scheme (POMIS)? Post Office Monthly Income Scheme (POMIS) is a savings scheme offered by the Indian Post Office that provides fixed monthly income to investors. Deposits under the POMIS can be made in the range of Rs. 1500 to Rs. 4.5 lakhs. The interest earned and the deposit are both eligible for tax benefits as per the prevailing tax laws. Post Office Monthly Income Scheme for senior citizens The Post Office Monthly Income Scheme (POMIS) also has a special variant for senior citizens, which offers a slightly higher interest rate of 7.4% p.a. The other terms ..read more

What is Facultative Reinsurance? Facultative reinsurance is a type of reinsurance that is designed to cover specific risks that cannot be covered by traditional reinsurance policies. It allows insurers to transfer a particular risk to a reinsurer, reducing their exposure to potential losses. Facultative reinsurance policies are highly customizable and are negotiated separately between the insurer and the reinsurer. This enables insurers to tailor the coverage to their specific needs, which can be more cost-effective than purchasing a broader insurance policy or self-insuring. While facultative ..read more

When it comes to protecting your business against unforeseen risks, insurance is a necessary investment. However, there are situations where the coverage provided by a traditional insurance policy may not be enough. This is where reinsurance and coinsurance come into play. But what exactly are they, and which one is right for your business? In this article, we will explore the key differences between reinsurance and coinsurance, and provide insights to help you make an informed decision. Difference Between Reinsurance and Coinsurance Both reinsurance and coinsurance are designed to transfer ri ..read more

Corporate companies often offer health insurance to employees. And post Covid-19 it is now mandatory for Indian companies to provide health insurance to their employees. However, often employees face a dilemma about whether they should buy health insurance or not. This is often because corporate health insurance might not fulfil all the needs of a person or might not be sufficient. However, before you decide to purchase additional insurance you should consider some factors. Understanding Your Corporate Health Insurance Plan A corporate health insurance plan is a type of plan that provides cove ..read more

Health insurance is an important factor for any company. It provides financial security to employees and their families, as well as peace of mind knowing that medical bills will be taken care of in case of any illness or injury. Being able to access quality healthcare is especially important for companies with a large workforce, as it can help them keep their employees healthy and productive. With the right health insurance plan, companies can provide better coverage for their employees while also saving costs in the long run. Why Companies Should Provide Health Insurance Benefits Health insur ..read more