Insurers Strike Back
Oct 3rd, 2010 by michellecheung2
Each year in Canada, there are 40,000 lightning-related insurance claims, totalling between $500 million and $1 billion. Insurers find the need to verify past strikes from a trustworthy source instead of relying on the adjusters to “recreate events that literally happened in the blink of an eye”.
Here’s the good news to the insurers. The Weather Network is now monitoring a new data base that reflects the strikes record since 2007. Although the information about strike locations is not 100% accurate and precise, it help adjusters in determining the legitimacy of claims.
After learning about the basic financial concepts from Mr. Murray Carlson, I realized that insurance is a type of investment. In simple words, to invest is to give up some current wealth to the counterparty in the investment contract in order to acquire future profit that may be safe or risky. In insurance, policyholders are investors who make regular payment to the insurers, so as to obtain possible payments in exchange to the risk of a loss. However, some people tend to make money by setting frauds. Thus, the insurers are always looking for ways to prevent frauds, just like the request of the strikes data.
Source of the article: Maclean’s