Answer to Question #166087 in Management for Ps

Question #166087

Subject :insurance management

1.explain in detail the key factors in underwriting of marine cargo insurance?( please answer in 200 to 250 words in points)

2.why there is an increase in the health insurance policies in India ?(please answer in points and give at least 8 to 10 points for this in detail)

Expert's answer

Marine cargo underwriters always consider the seasonal weather along the route of the shipment. Because underwriters insure against late delivery and loss or damage, the port of origin and the destination port are considered. Marine underwriters stand ready to reimburse your marine insurer for ocean shipments delayed, lost in transit, or stolen. The underwriting process spreads a loss out through several re-insurers or groups of re-insurers called managed syndicates so that no one entity risks an unacceptable loss. Nature of the Cargo is one of the fundamental factors considered in underwriting, which depends on The type of cargo, whether it's finished goods, refrigerated goods, pharmaceuticals, or machinery, makes a difference in the underwriting. An underwriter wouldn't insure refrigerated cargo shipped in an unrefrigerated container. The packaging of the commodities influences the decision to underwrite. Secondly, hazards such as weather have to be considered; hence marine cargo underwriters always consider the seasonal weather along the shipment route. Thirdly, risks such as sinking, loss of cargo to theft, general average risk; when cargo is deliberately jettisoned from a ship for the ship's safety and crew, the loss to one shipper is shared by all shippers. Marine cargo underwriters insure against the general average by assessing the ship's condition and the experience of the captain and crew. Therefore, underwriters have to look at the possibility of these risks happening. Lastly, underwriters will also consider Worst-case Incident in the underwriting process.

Health insurance policies have increased rapidly in India in the recent past due to the explained factors. Firstly, insurers are trying to build innovative products that, apart from providing coverage as per the guidelines, also focus on policyholders' all-around wellness, thus encouraging the population to take insurance covers. Secondly, Combi plans can be a mix of any life and health plan. The Insurance Regulatory and Development Authority of India (IRDAI) has recently come out with the guidelines for combi plans that would allow life and a non-life insurer to agree to offer such plans. This mixture would encourage many people to take insurance policies, making them increase. Thirdly, a Cumulative bonus in benefit plans allowed. The addition of a cumulative bonus increases the sum insured over a period of time and helps in meeting a higher treatment expense in the future, which helps the policyholders. Other factors include; Proposal form can be flexible, and insurers may design them independently, Life insurers are not allowed to offer indemnity-based products, Insurers have been asked to launch pilot products to advise people accordingly, wellness benefits have been devised in health insurance policies which have led to increase in numbers of health Insurance policies. 

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