What are insurance spares?

Answer 1

In the ILS world Insurance Spares or buys are items that are not normally subject to attributable failures but may require replacing due to some other activity. For example the lose of a bolt washer etc during maintenance. In an ideal world the item would be removed and replaced without requiring these however in the real world Dr Cock-up visits and we require replacement items. Insurance buys can be calculated as a % of the total quantity of an item in an end item. For larger items window etc the item may also be a critical item and subject to other procurement rules.