Risk Management: Insuring Against Risk - Revised
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In this course you will learn how insurance is defined and why the "law of large numbers" is the essence of insurance. Risk transfer is when an entity (the insured) transfers risk to a third party (the insurer). Risks that are perfectly suited for insurance must meet certain requirements, such as: a large number of similar exposures; losses will be accidental; a catastrophe cannot occur; losses are definite; probable distribution of losses can be determined and coverage is economically feasible.
You will learn about types of insurance, insurance businesses and government-mandated insurance. Because insurers operate in markets with major influences, especially catastrophes (natural and human-made), the external and regulatory conditions affecting insurers, forms an important part of their operations. You will study the marketing activities of segments within the insurance industry and analyze insurance agency relationships; how agents and brokers differ and the main features of "underwriting". Underwriting is the process of classifying potential "insureds", into the appropriate risk classification, in order to charge the appropriate rate.
Risk is part of our daily lives and businesses. Learning how to manage risk and having the right insurance measures in place will make it easier for you when things go wrong. This Insuring Against Risk course will show you how insurance can be used to manage risk, so make sure to check it out and start learning how to control, prevent, and reduce losses that can result from risk.Start Course Now
After completing this course you will be able to:
- Explain types of insurance and insurers.
- Define the law of large numbers as the essence of insurance.
- Summarize why certain risks cannot be insured by private insurance companies.
- Describe the functions of governmental insurance organizations.
- Discuss various marketing activities within different segments of the insurance industry.
- Explain how insurance agents and brokers differ.
- Outline the main features of the underwriting and claims adjustment processes.
- Summarize the role of actuaries in insurance operations.
- Demonstrate how reinsurance works.
- Discuss ethical considerations when making representations to underwriters.
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