General insurance Risks management in insurance

[Phabbyfundz]

Management of the varied risks to which the business, firm or association might be subject. It includes analyzing all exposure to gauge the likelihood if loss and choosing options to better manage and minimize loss. This options typically includes reducing and eliminating the risks with safety measures, buying insurance and self insurance.
Risks retention groups are businesses that band together to self insure and form an organization which is chartered and licensed as an insurer in at least one state, to handle liability insurance. The need for insurance companies to be capitalized according to the inherent riskiness of the type of insurance they sell. Higher risk type insurance liability as opposed to property business, generally necessitate higher levels of capital in acquiring insurance polices.

 

[btaliat]

This is nunber one reason why I do think insurance is like a game of chess. While trying to reduce the chance of the occurrence of an even when the person has already paid for the same event with the aim of leveraging the the risk associated with the same event as well.

 

[Wisdom01]

Then the risk retention groups are established just to reducing risks and buying premium , because most insurance companies usually offer less amount of money for premium ,just incase there is any huge amount of premium bought in bulk altogether the insurer might surely get a bonus in cases like that

 

[Mandy96]

If I am being asked. I don’t think there is much risk to manage in insurance business by both the insurer and the insured. It seems fair because the two parties has almost an equal chance well it takes trust for the client to invest in a particular policyholder but it still makes sense considering what it’s at stake

 

[Chibson]

This is actually one of the reasons some people consider insurance as a gamble. After paying premiums for the policy you have applied then such occurrences do not actually happen, you will definitely lose out. it is also very important for people to try as much as possible not to get into accidents because they are life may be at risk. But generally it is important to have insurance in case of any bad incident.