Premium

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Premium The word "premium" is derived from the Latin praemium, where it meant "reward" or "prize." An amount to be paid for a contract of insurance for protection from a loss, hazard, or harm. The amount is either monthly, quarterly or annual that you must pay in order to have the exchange for insurance coverage. Premiums is the compensation insurer receives for bearing the risk of a payout should an event occur that triggers coverage. Failure to pay the premium on the part of the individual or the business may result in the cancellation of the policy and a loss of coverage. The premium may also contain intermediaries (sales agent's or broker's) commissions. These amounts are fixed by the regulator. The intermediaries commission may go higher depending on an agreement between the parties. An insured pays a fixed premium amount in exchange for the insurance company's guarantee to cover any economic losses incurred under the scope of the agreement. Premiums are based on both the risk associated with the insured and the amount of coverage desired. Your insurance premiums may increase after the policy period ends. The insurer may increase the premium for claims made during the previous period if the risk associated with offering a particular type of insurance increases, or if the cost of providing coverage increases. Insurance companies generally employ actuaries to determine risk levels and premium prices for a given insurance policy. The emergence of sophisticated algorithms and artificial intelligence is fundamentally changing how insurance is priced and sold. Shopping around for insurance may help you find affordable premiums. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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