What is Risk Management in insurance management?

Risk management is a broad topic. It involves taking steps to minimize the likelihood of things going wrong, a concept known as loss control. It also involves the purchasing of insurance to reduce the financial impact of adverse events on a company when, despite your best efforts, bad things happen.

What are the common terms used in insurance?

Important Insurance Terms

  • Premium. This is the actual cost of your insurance plan.
  • Deductible.
  • Co-Pay.
  • Coinsurance.
  • Provider Network.
  • Usual, Reasonable and Customary.
  • Pre-existing Conditions.
  • Beneficiary.

What is a risk in insurance terms?

Risk — (1) Uncertainty arising from the possible occurrence of given events. (2) The insured or the property to which an insurance policy relates.

What are the three main types of insurance risks?

There are generally 3 types of risk that can be covered by insurance: personal risk, property risk, and liability risk. Personal risk is any risk that can affect the health or safety of an individual, such as being injured by an accident or suffering from an illness.

What are the 4 types of insurance?

Following are some of the types of general insurance available in India:

  • Health Insurance.
  • Motor Insurance.
  • Home Insurance.
  • Fire Insurance.
  • Travel Insurance.

What are the 4 risk management techniques?

There are four main risk management strategies, or risk treatment options:

  • Risk acceptance.
  • Risk transference.
  • Risk avoidance.
  • Risk reduction.

What does CV mean in insurance terms?

Cash value life insurance is more expensive than term life insurance.

What does ph mean in insurance?

Premium History (insurance) PH.

What are the 4 types of risk in insurance?

Risk Types — a number of different ways in which risks are categorized. A few categories that are commonly used are market risk, credit risk, operational risk, strategic risk, liquidity risk, and event risk.

What are the 4 types of risk?

The main four types of risk are:

  • strategic risk – eg a competitor coming on to the market.
  • compliance and regulatory risk – eg introduction of new rules or legislation.
  • financial risk – eg interest rate rise on your business loan or a non-paying customer.
  • operational risk – eg the breakdown or theft of key equipment.

What are the 10 principles of insurance?

Principles of Insurance

  • Utmost Good Faith.
  • Proximate Cause.
  • Insurable Interest.
  • Indemnity.
  • Subrogation.
  • Contribution.
  • Loss Minimization.

What are the 2 main type of insurance?

There are two broad types of insurance: Life Insurance. General Insurance.

Which are 5 risk management strategies?

The basic methods for risk management—avoidance, retention, sharing, transferring, and loss prevention and reduction—can apply to all facets of an individual’s life and can pay off in the long run.

What are the 5 risk management process?

Steps of the Risk Management Process

  • Identify the risk.
  • Analyze the risk.
  • Prioritize the risk.
  • Treat the risk.
  • Monitor the risk.

What does DWG mean in insurance?

Broad Form Dwelling Policy (DWG-2 or DP-2)

In addition to the main structure, other structures, personal property and fair rental value covered under the Basic Form policy, the Broad Form Dwelling policy adds additional living expense coverage.

What does OTP mean in insurance?

Tip Sheet for Opioid Treatment Program (OTP) Providers Serving Dually Eligible Individuals: State Coverage of the Medicare Part.

What does CP stand for in insurance?

Comprehensive project (CP) insurance.

What are the two major types of risk?

The two major types of risk are systematic risk and unsystematic risk. Systematic risk impacts everything. It is the general, broad risk assumed when investing. Unsystematic risk is more specific to a company, industry, or sector.

What are the six broad categories of risk?


  • Health and safety risk. General health and safety risks can be presented in a variety of forms, regardless of whether the workplace is an office or construction site.
  • Reputational risk.
  • Operational risk.
  • Strategic risk.
  • Compliance risk.
  • Financial risk.

What are the 4 Ts of risk management?

tolerate, terminate, treat and transfer
A good way to summarise the different responses is with the 4Ts of risk management: tolerate, terminate, treat and transfer.

What are the 4 principles of risk management?

Four Principles of ORM
Accept risks when benefits outweigh costs. Accept no unnecessary risk. Anticipate and manage risk by planning. Make risk decisions at the right level.

What are the 7 basic principles of insurance?

In insurance, there are 7 basic principles that should be upheld, ie Insurable interest, Utmost good faith, proximate cause, indemnity, subrogation, contribution and loss of minimization.

What are the 4 elements of an insurance contract?

In general, an insurance contract must meet four conditions in order to be legally valid: it must be for a legal purpose; the parties must have a legal capacity to contract; there must be evidence of a meeting of minds between the insurer and the insured; and there must be a payment or consideration.

What are the principles of insurance?

In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution.

What are the 7 steps of risk management?

The 7 steps below provide a good framework for effectively managing project risk.

  1. Step 1- Outlining Objectives.
  2. Step 2 – Risk Management Plan.
  3. Step 3 – Identification.
  4. Step 4 – Evaluation.
  5. Step 5 – Planning.
  6. Step 6 – Management.
  7. Step 7 – Feedback.