7/24/2019 Catastrophe Insurance
1/5
CATASTROPHE
INSURANCE
7/24/2019 Catastrophe Insurance
2/5
Insurance to protect businesses and residences against
natural disasters such as earthquakes !oods and hurricanes
and against "an#"ade disasters such as terrorist attacks$
These lo%#probabilit& high#cost e'ents are generall&e(cluded )ro" standard ha*ard insurance policies and so
catastrophe insurance is required$
a catastrophic e'ent results in an e(tre"el& large nu"ber o)
clai"s being + led at the sa"e ti"e$
Reinsurance is used along %ith catastrophe insurance to
"anage catastrophe risk$
CATASTROPHE INSURANCE
7/24/2019 Catastrophe Insurance
3/5
The ethicall& questionable practice o) a salesperson
"isrepresenting or "isleading a custo"er about the
characteristics o) an insurance product
In an e,ort to "ake a sale to a potential custo"er a
salesperson could lea'e out certain in)or"ation or
describe an insurance product as so"ething the
custo"er urgentl& needs$-or e(a"ple selling li)e insurance to so"eone %ho
has no dependents is regarded as Mis selling.
.IS SE//IN0 O- INSURANCE PRO1UCTS
7/24/2019 Catastrophe Insurance
4/5
The practice o) selling or suggesting related or
co"pli"entar& products to a custo"er$
Example2 A /i)e Insurance co"pan& suggesting its
custo"er sign up )or car or health insurance$
CROSS SE//IN0 O- INSURANCEPRO1UCTS
7/24/2019 Catastrophe Insurance
5/5
HA3E A NICE 1A4
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