Insurance risk: Difference between revisions
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imported>Doug Williamson (Create the page. Source: MCT reading 1 - 1.4.1 page 3.) |
imported>Doug Williamson (Classify page.) |
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1. | |||
For the customer - or potential customer - of an insurer, insurance risk is the risk of financial loss or other adverse effects resulting from failures in relation to the organisation's insurance purchasing activities. | |||
A simple example would be failing to pay an insurance premium on time, resulting in the organisation being uninsured. | |||
2. | |||
For an insurer, a primary insurance risk is the risk of making losses on the provision of insurance. | |||
The most common cause is a greater than expected number or value of claims, or both. | |||
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*[[Insurance]] | *[[Insurance]] | ||
*[[Premium]] | *[[Premium]] | ||
[[Category:Identify_and_assess_risks]] | |||
Latest revision as of 16:36, 1 July 2022
1.
For the customer - or potential customer - of an insurer, insurance risk is the risk of financial loss or other adverse effects resulting from failures in relation to the organisation's insurance purchasing activities.
A simple example would be failing to pay an insurance premium on time, resulting in the organisation being uninsured.
2.
For an insurer, a primary insurance risk is the risk of making losses on the provision of insurance.
The most common cause is a greater than expected number or value of claims, or both.
