As we know, one way of risk prevention is to secure the risk for the insurance company. This method is the most important way of risk management. Therefore, many people think that risk management is the same as insurance. Although the actual circumstances are not the case.
Insurance: an insurance transaction between two parties, the insured and the insurer. If the insurer warrants the insured person for compensation for the loss he incurs because of an event that does not necessarily occur or for which it was not possible to determine when or when. As the insured has the obligation to pay money to the insurer, the amount of the sum insured, usually called a "premium".
From a number of angles, the insurance has a number of purposes to divide:
A. Economically, then:
Reduce uncertainty of the results of individual or enterprise operations to meet your needs or reach goals.
Transferring the risk to the other party and to the other in a reasonable degree of risk, so you can estimate the magnitude of the loss opportunity.
B. By law:
It transfers the risks of object or business to another party.
The insurer transfers the insurer by transferring the insurer through insurance premiums through insurance premiums (insurance policy).
C. From a commercial point of view:
Share the risks to every participant in the insurance program.
Transferred risk from individuals / companies to risk management financial institutions (insurance companies) that share risk with all the participants in the insurance they manage.
D. From a social point of view:
All participants in the insurance program will jointly bear the losses.
All group members (members of the group) of the insurance program contribute (in the form of promotions) to sympathize with some of their members' losses.
E. For Mathematics:
The magnitude of the potential for risk and the revenue forecast are used to share the participants (participants' group).
Calculating probability based on probability theory ("probability theory") performed by actuaries and subcontractors.
Source by sbobet