Hello everyone. I am writing again dec a long break, and this is also because my classes are intense. While I was studying for my exams, I wanted to give you information about insurance. Maybe you'll be interested. Thank you in advance. I wish you a healthy day :)
What is the risk? Types of risks;
- risks to the person
- risks related to property
- risks related to liability
Stages of risk management
1- determination of strategic goals
2- risk analysis and evaluation
3- making decisions about the type of risk management
4- evaluation of the results obtained from the application and use of feedback information.
Types of risk management
- avoiding risk
- keep the risk on
- reducing the risk
- transferring the risk
What is insurance
- insurance is a contract that undertakes to cover the loss associated with the realization of a foreseen risk in monetary terms by the insurer in exchange for the payment of a certain fee ( premium) by the insured.
- insurance, the insurer for the premium money that haloed the occurrence of a hazard for the other one measurable a benefit, or to provide compensation in the event of anyone's life due to the duration of one or several, or a certain set of occurring in your life, hence the payment of money in such manner or on an agreement to be found.
Functions of insurance
Social functions of insurance:
-trust
-safety
-social responsibility
Economic functions of insurance
- compensation for losses
- fund-raising capacity
- support of entrepreneurship
- reducing the financial burden on the public
- due to the advantages
Insurance contract - policy
Information that should be included in the insurance contract ;
- insurer
- insured / insured
- danger ( risk) and subject of insurance
- start, end and edit date
- interests
- the cost of insurance
- insurance fee (premium) and payment information
- general conditions
- special conditions
General requirements
- It is the legislation that gives all the information about the application of a branch.
- the scope covers subject matter, non-collateral cases, non-collateral cases if there is no contract to the contrary, and other legal information.
- it is included both in the information form and on the policy.
- each branch has general requirements.
Special requirements
- it should not contradict the general requirements.
- it must be regulated in favor of insurance.
Termination of the insurance contract
- expiration of the period written in the policy
- the insurer uses the right of termination
- the insured person uses his right to terminate or requests termination of his own free will
- realization of risk in some branches.
The parties to the insurance
- the insurer
- insured
- beneficiary
- insurer/ insurance company
- mortgage, pledge, etc. The Creditor
- damaged 3. Party
The concept of insurability
- homogeneity
- the law of large numbers
- measurable risk
- incidental risk , damage
- can be determined - can be calculated risk- damage
- large enough damage
- payable premium
Homogeneity
- characteristics of ideally insurable risk: although insurance is a risk management technique, there are a number of basic criteria that determine which situations are commercially insurable;
1-homogeneity: the risk that is the subject of insurance should be in a structure that can be grouped in a homogeneous way. Homogeneity allows similar risks to be decoupled and managed.
The law of large numbers
2- a large number of probability units: as the number of risks covered by insurance companies increases, the results that occur approach the expected value.
The basic principle of insurance is that as many people as possible who face the same or similar risks are gathered together and the premiums to be collected from these people are dec to cover the compensation to be paid if the risk occurs.
Incidental risk
3- accidental damage: in insurance, the damage must be accidental, that is, it must be based on a coincidence, or at least be outside the control of the insured or beneficiary, even if it is intentional.
Computable risk
- the time, place and event that caused the damage should be identifiable when the damage occurred. The loss incurred as a result of damage should be calculated materially. The main purpose of insurance is the compensation of measurable loss in money caused by damage caused as a result of the realization of the risk subject to the insurance contract.
Large enough damage
It means that most of the units at risk will not be damaged at the same time. As mentioned earlier, pooling is the essence of insurance. The pooling technique in a particular class crashes and becomes inoperable. Premiums must be withdrawn to very high levels, and the insurance technique is not used because it is no longer viable for a small number of members to distribute the damage to the entire group.
Payable premium
Since the collateral that will be taken as the basis for insuring a risk that is very likely to occur statistically or a risk that can lead to very high monetary losses will also be a very high amount, the premium will also be determined high. In this case, there will probably also be no person to purchase the insurance contract.
