Exemptions are unavoidable, but they should be set reasonably and reflected in insurance premiums.
For businesses that have been in operation for a sufficient period of time, the Annual Average Loss (AAL) is calculated from the amount of insurance claims paid for past damage incidents. The AAL is a figure close to the net premium calculated by insurance companies during the underwriting (premium estimation) process. Without knowing this figure, it is impossible to verify the reasonableness of the premiums provided by insurance companies.
Based on AAL's performance data, our company evaluates the impact on insurance premiums from the introduction of deductibles and extensions of the deductible period, and designs a reasonable deductible based on the results of multiple case studies.