Group 5 Flashcards
Is a mechanism where risk or part of risk are transferred from one party to another party in return for payment.
Insurance
Mechanism through which firms can reduce nagative financial consequences of an uncertain event or possible financial loss. It reduces the impact of financial loss on firms, including banks
Insurance
Has been used for centuries as a tool to manage the risk of uncertain losses
Insurance Risk Transfer
A professional who helps individuals and buss to find right insurance coverage to protect their assets and manage risk. Serves as a middleman bet customer and insurance company, making sure you get the best possible coverage.
Insurance Intermediary
6 under Insurance Intermediary
- Risk assessment analysis
- Policy selection and placement
- Gathering quotes and negotiation
- Claims assistance and mngt
- Policy renewals and reviews
- Ongoing support and relationship mngt
Plays vital role in supporting mngt by assessing risk, developing customized insurance solution, recommending coverage based on market knowledge, gathering quotes, assisting with claims, and providing ongoing support.
Insurance Intermediary
Portion of insurance market that allows companies to purchase coverage and transfer risk w/out havibg to use traditional commercial insurance.
ART (Alternative Risk Transfer)
Includes RRG, insurance pools, and captive insurers, wholly-owned subsidiary companies that provide risk mitigation to its parent company or group of related companies
ART
Alternative Risk Transfer has two primary segment:
- Risk Transfer through alternative products
- ” Through alternative carriers
Practice of insuring yourself on your property by saving your income or other funds rather than by buying an insurance policy
Self-insurance
Alternative to self-insurance in which a parent group or groups create a licensed insurance company to provide coverage for itself.
Captive insurance
Typically formed for the purpose of risk mngt
Captives
3 advantages of Captive Insurance
- Capital
- Control
- Coverage
