Hostname: page-component-78c5997874-j824f Total loading time: 0 Render date: 2024-11-14T07:25:35.289Z Has data issue: false hasContentIssue false
  • English
  • Français

Deductibles In Industrial Fire Insurance

Published online by Cambridge University Press:  29 August 2014

Jürgen Strauss
Rights & Permissions [Opens in a new window]

Extract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

In recent times, the subject of deductibles in Industrial Fire insurance has gained significance to an increasing extent. In fact, up to a short time ago it was by no means common to apply deductibles in Industrial Fire insurance in Europe. The situation is entirely different in the USA where deductibles are the usual thing and are even obligatory with individual risk categories (e.g. petroleum refineries), hazards (e.g. explosion), or special types of companies (e.g. factory mutuals).

Today, however, there is a definite increase in the demand for deductibles in Industrial Fire insurance in Europe, too.

This trend may be explained by the fact that in order to reorganize their business successfully, insurers have been forced to increase their premiums by a considerable amount. It seems to be an unwritten law that when premiums in general are increased considerably, the point will some time or other be reached when the insured do not accept any further premium increases. Thus, even if such increases are completely justified in a view of claims experience, the insured will demand that premiums are reduced either by the insurer granting rebates for appropriate loss prevention measures or by the introduction of deductibles. In the USA, for example, such a situation arose around 1960 when considerable premium increases very quickly led to the introduction of substantial deductibles in Industrial business. In some European countries we are currently experiencing a similar development.

Type
Research Article
Information
ASTIN Bulletin: The Journal of the IAA , Volume 8 , Issue 3 , September 1975 , pp. 378 - 393
Copyright
Copyright © International Actuarial Association 1975

References

[1]Ferrara, G., “Distributions des sinistres selon leur coût”, The ASTIN Bulletin, Vol.VI, Part 1, 1971.Google Scholar
[2]Ammeter, H., “Größtschaden-Verteilungen und ihre Anwendungen”, Mitteilungen der Vereinigung schweizerischer Versicherungsmathematiker, Vol. 71, Issue 1, 1971.Google Scholar
[3]Benckert, Lars-Gunnar and Jung, Jan, Statistical models of claim distributions in fire insurance, 10th ASTIN Colloquium at the University of Essex, Great Britain, 1973.Google Scholar
[4]Neuburger, E., Berütcksichtigung der Gegenauslese bei der Kalkulation von Rabattsätzen für Abzugsfranchisen in der Feuerversicherung, Munich 1972, unpublished.Google Scholar
[5]Depoid, P., Applications de la statistique aux assurances accidents et dommages, Paris 1967.Google Scholar
[6]Pikola, , Porath, , Raffler, , Bericht über Franchisen in der US-Feuerversicherung, Association of German Non-life insurers, Cologne, 1972.Google Scholar
[7]Thomazin, , The granting of large deductibles under Fire Insurance policies, London, 1972.Google Scholar