Discuss the hardening of the insurance market after the terrorist attack on the World Trade Center, USA

Rate Making in Insurance

Discuss the hardening of the insurance market after the terrorist attack on the World Trade Center, USA

These caselets focus on the difficulties that underwriters face in fixing a rate. 

Caselet 1 discusses the information required for fixing rates insofar as the Indian agriculture insurance sector is concerned. It also discusses the suitable method of ratemaking for agriculture insurance.

 

Caselet 2 examines the hardening of the insurance market after the terrorist attack on the World Trade Center, USA, and the problems faced by underwriters and actuaries to fix rates for terrorism covers. The caselet also stresses on the need for an organization to buy a policy from a highly rated insurer in order to improve its credit rating.

Issues:

» Understand the role and importance of underwriters in fixing a rate

» Discuss the hardening of the insurance market after the terrorist attack on the World Trade Center, USA

 

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