Which insurance type is most suitable for less frequent events?

Occurrence-based insurance is indeed the most suitable type for less frequent events. This type of insurance provides coverage for incidents that occur during the policy period, regardless of when the claim is filed. This means that as long as the event occurred while the policy was active, the insurance will cover the claims even if they are made long after the incident.

This coverage is particularly beneficial for events that may occur infrequently, such as specific incidents in healthcare or liability situations. The policy protects the insured from future claims related to those events, giving peace of mind that ongoing coverage exists for occurrences that might not result in immediate claims or that might surface years later.

In contrast, claims-made insurance only covers events that occur and are reported during the policy period. This can be limiting for less frequent events, as if a claim arises after the policy has lapsed, coverage may not be available. Short-term insurance is generally designed for temporary coverage needs and might not address the specific frequency of events. Captive insurance, typically used by larger organizations to self-insure against specific risks, does not address the question of frequency in the same manner. Therefore, the characteristics of occurrence-based insurance align closely with the requirements for covering less frequent events.