Demystifying Subscription Policies

Insurance can be a complex and confusing world, filled with jargon and technical terms. One such term that often leaves people scratching their heads is “subscription policy.” In simple terms, a subscription policy refers to an agreement between two or more insurance companies to share the rating and coverage of a policy, with each insurer taking a specific percentage of the risk. This arrangement allows the insurers to collectively provide the required limits for the policyholder.

Now, you might be thinking, “That sounds quite straightforward!” However, let’s delve a little deeper to truly understand the intricacies of subscription policies and how they function.