Accumulation

Accumulation  is the total combined exposure to a single risk or event across multiple policies or contracts. Modern insurers meticulously manage accumulation to avoid catastrophic losses, employing sophisticated modeling tools to track and mitigate aggregate exposures in diverse risk scenarios. In hurricane-prone areas, insurers track the accumulation of policies to ensure that a single event doesn’t result in overwhelming claims that could destabilize the company.Percentage addition to policy benefits as a re- ward to the insured for continuous renewal.