Insurance risk: Difference between revisions

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imported>Doug Williamson
(Be explicit that it is the treasurer's employer organisation which will be uninsured in the case illustrated.)
imported>Doug Williamson
(Expand.)
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The risk of financial loss or other adverse effects resulting from failures in relation to the organisation's insurance activities.
'''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.
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.





Revision as of 16:01, 30 October 2016

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.


See also