Risk averse / Risk seeking Flashcards
Explain the principal of risk averse and risk seeking
1
Q
Risk averse is
A
disinclined or reluctant to take risks.
People with a risk averse nature are more likely to take out insurance wherever possible to transfer a risk away from themselves.
2
Q
Risk seeking is
A
inclined or eager to take risks.
People with a risk seeking nature are less likely to transfer away a risk and therefore are not as likely to purchase insurance.
