Article Description: The purpose of this article is to define how a subscription model works, why its important, how it is applied within Optiom, and to outline the date our policies began being underwritten under this model. 

What is a Subscription Model?

A subscription model in insurance is an arrangement where multiple insurers share portions of the same risk under a single policy. Instead of one insurer taking full responsibility for covering the risk, each subscriber agrees to cover a certain percentage of any resulting losses.

Typically, one insurer, referred to as the lead insurer, takes a larger share of the risk and holds binding authority. This means they have the authority to negotiate policy terms, set guidelines surrounding policy issuance, claims processing, etc. The other insurers subscribe to the same conditions set in place by the lead insurer. QBE is currently the lead insurer on our policies.

The specific portion of risk each insurer is responsible for is detailed on the policy declaration as displayed below:

• Policies written prior to March 1^st, 2023, are 100% underwritten by QBE
• Policies written on or after March 1^st, 2023, are underwritten using a subscription model shared by Aviva Canada Inc, Tokio Marine Canada Ltd, and QBE, with QBE being our lead underwriter. 

Why it's Beneficial

Financial Strength & Stability:

• The insured benefits from the combined financial strength of multiple reputable insurers
• Creates a more resilient structure that can withstand major claims or catastrophic events

Confidence & Credibility:

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