Mitrovic Consulting

Finite insurance is an insurance contract lasting several years in which the insured pays a premium into a fund managed by the insurer. If losses are low at the end of the term, the insured gets a refund. If losses exceed the limit, the insured pays an additional premium or the deal ends. In essence, it is a combination of self insurance and capped, limited risk transfer. AIG wrote a finite risk policy for Phil Ritson, a well known South African golf professional, instructor,

How many times have you found yourself in a compromising coverage dispute because of advice from counsel that causes huge reputational damage, gives competitors something to market against you, and ultimately impacts market penetration in a book of business, the way policies are priced, and the scope of coverage? For example, Directors & Officers (“D&O”) public company insurance has gone through an evolution since 1990 that has led to unfavorable results for the public compan