Residual Market Plan

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Residual Market Plan A method devised for coverage of greater than average risk individuals who cannot obtain insurance through normal market channels. I'm simpler terms a residual market plan is a type of insurance plan that provides coverage to individuals or businesses that have been unable to obtain coverage through the voluntary market. The voluntary market is the regular market for insurance, where insurers can choose to underwrite or not underwrite a particular risk. The residual market is a last resort for people who have been rejected by the voluntary market. The residual market exists to ensure coverage is available when insurance companies in the regular market reject an applicant as too risky. Residual Market Plans are used when you are unable to obtain conventional insurance coverage through standard markets. Residual market plans are considered “Markets of last resort”. Therefore residual market plan works with many different programs in place across the country/region/state to provide insurance to high-risk policyholders who may have difficulty obtaining coverage from the standard market. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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