Insurance business relates to the transfer of risk from the insured to the insurer in exchange of a premium. The aforementioned sector has been adversely impacted by the consequences of the economic crisis. A lot of insurance companies, especially large multinationals, have struggled to remain cost-efficient and conserve capital.
The aftermath of the global financial crisis is translated into a heavily regulated industry across all the aspects surrounding the sector. Laws and regulations can be generally summarised in:
- The regulation of the business of insurance,
- The regulation of the content of insurance policies
- The regulation of claim handling
A more in-depth definition would refer to the effecting and execution by an insurance undertaking of contracts with respect to credit guarantee bonds, execution of contract bonds, administration bonds, release from prison guarantee bonds, custom clearance bonds or guarantee contracts of a similar nature.
They also function as financiers, deriving a large part of their revenues from investments. Insurance companies must maintain enormous reserves of capital to back up potential claims obligations. They invest those reserves in stocks, bonds, and real estate whilst obviously bearing the calculated risk of their investment moving unfavorably.
ConnectedSky can help you on negligence defense and all types of related negligence claims defense and also we preserve liability and public liability claims on behalf of corporates and insurers. We also deal with matters related to coverage opinions, claims analysis, regulatory compliance and endorsements.