Double insurance is a type of risk management system used to minimize financial losses caused by an unforeseen event. In this system, two insurance policies are taken out on the same assets in order to provide more comprehensive coverage. Double insurance also allows for cost-sharing between two separate insurance companies, which is beneficial for both the insured and insurers. Reinsurance is another form of risk management, allowing insurers to spread their risk by transferring responsibility for the claims payment to a third party. This presentation will discuss the fundamentals of double insurance and reinsurance and their advantages and disadvantages.
Table Of Content:
- Difference Between Double Insurance and Reinsurance (with ...
- Difference Between Double Insurance and Reinsurance - Wishpolicy
- Health Insurance Coverage Eight Years After the ACA — 2018 ...
- ALTERNATIVE CAPITAL AND ITS IMPACT ON INSURANCE AND ...
- 2021 Insurance outlook Accelerating recovery from the pandemic ...
- Digital disruption in insurance: Cutting through the noise
- Brazilian Insurance Market Overview — SUSEP
- Insurance strategy for a COVID-19 world: PwC
- Basic Insurance Accounting—Selected Topics
- Re Insurance & Double Insurance | Reinsurance | Insurance
1. Difference Between Double Insurance and Reinsurance (with ...
https://keydifferences.com/difference-between-double-insurance-and-reinsurance.html
Feb 17, 2018 ... Double insurance refers to a situation in which the same risk and subject matter, is insured more than once. Reinsurance implies an arrangement, ...
2. Difference Between Double Insurance and Reinsurance - Wishpolicy
https://www.wishpolicy.com/articles/difference-between-double-insurance-and-reinsurance/
Sep 30, 2020 ... In double insurance, a common risk is borne by different insurers and in reinsurance, the risk is transferred to a different insurer.
3. Health Insurance Coverage Eight Years After the ACA — 2018 ...
https://www.commonwealthfund.org/publications/issue-briefs/2019/feb/health-insurance-coverage-eight-years-after-aca
Feb 7, 2019 ... Since 2010, more people have health insurance under the ACA, but a higher ... News Release ↓ · Chartpack (ppt) ↓ · Tables ↓ · Chartpack (pdf) ... to 20 percent, nearly double the rate prior to the coverage expansions. ... The ACA's reinsurance program was effective in lowering marketplace premiums.
4. ALTERNATIVE CAPITAL AND ITS IMPACT ON INSURANCE AND ...
https://www.iii.org/sites/default/files/docs/pdf/paper_alternativecapital_final.pdf
Alternative capital constituted 12 percent of the global reinsurance market at third - quarter 2014, more than double its market share at the end of 2010 (Figure 1).
5. 2021 Insurance outlook Accelerating recovery from the pandemic ...
https://www2.deloitte.com/xe/en/insights/industry/financial-services/financial-services-industry-outlooks/insurance-industry-outlook.html
Dec 3, 2020 ... In our 2021 insurance outlook, 200 industry leaders weighed in on their ... for example, nearly all types of annuities plunged by double-digits in the ... to life, property and casualty, reinsurers and insurance broker clients.
6. Digital disruption in insurance: Cutting through the noise
https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/time%20for%20insurance%20companies%20to%20face%20digital%20reality/digital-disruption-in-insurance.ashx
Insurance CEOs constantly hear about digital marketing, ... environment, disintermediating reinsurers ... could more than double profits over ... ~10-15 ppt.
7. Brazilian Insurance Market Overview — SUSEP
http://www.susep.gov.br/english-susep/insurancemarket
Insurance premiums in Brazil are concentrated on three lines of businesses: life, ... in the Brazilian insurance market but prepare it to the reinsurance opening.
8. Insurance strategy for a COVID-19 world: PwC
https://www.pwc.com/us/en/industries/insurance/library/plan-for-post-pandemic-future.html
The big question facing leading insurance carriers is how to adapt business strategies to accommodate a new way of working.
9. Basic Insurance Accounting—Selected Topics
https://www.casact.org/sites/default/files/old/studynotes_7us_blanchard_july2008.pdf
Jul 1, 2008 ... Examples of how ceded reinsurance impacts an insurers financial ... (Note: Most accounting systems rely on some form of double-entry ...
10. Re Insurance & Double Insurance | Reinsurance | Insurance
https://www.scribd.com/doc/59335976/Re-Insurance-Double-Insurance
Re Insurance & Double Insurance - Free download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online for free.
What is double insurance?
Double insurance is a type of risk management system that involves taking out two separate insurance policies on the same asset in order to provide more comprehensive coverage than what could be achieved with just one policy. This can also reduce costs as it allows for cost-sharing between two different insurance companies or providers.
How does reinsurance work?
Reinsurance is a form of risk management that allows insurers to mitigate their financial losses by transferring responsibility for claims payments to a third party, such as another insurer or a specialized reinsurer. Reinsurers typically only agree to accept reinsurance agreements which offer them more profitable terms than regular direct insurance contracts.
What are some of the advantages of double insurance and reinsurance?
Advantages of double insurance include wider coverage, improved protection from unexpected losses, and cost sharing between insurers. Benefits associated with reinsurance include increased liability limits, lower overall costs due to sharing risks across multiple entities, improved liquidity and capital resource availability, and access to specialist knowledge or services provided by the reinsurer.
Are there any drawbacks to using double insurance or reinsurance?
Drawbacks associated with double insurance might include complicated administration procedures (e.g., coordinating between insurers), increased premium costs when compared to single-policy coverage, potential conflicts over who pays what claim amount first if both policies are triggered simultaneously (coordination issues), and possible delays due to coordination issues between multiple insurers. Disadvantages associated with reinsurance might include restrictions regarding accepted risks which may limit opportunities for an insurer/reinsured entity (due mainly to lack of expertise or access), potential conflict over premiums charged by the reinsured company (risk selection problems), lack of control in decision making related to accepting/denying claims covered under a given policy or contract with the reinsured company.(END) Conclusion: Double Insurance and Reinsurance are both effective forms of risk management systems that provide additional coverage when dealing with unforeseen events that can cause significant financial losses. Both have advantages as well as disadvantages that need to be weighed before deciding which option works best in any given situation. While they carry short term expenditures they often yield long term benefits when properly executed.
Conclusion:
Double Insurance and Reinsurance are both effective forms of risk management systems that provide additional coverage when dealing with unforeseen events that can cause significant financial losses. Both have advantages as well as disadvantages that need to be weighed before deciding which option works best in any given situation. While they carry short term expenditures they often yield long term benefits when properly executed.