What is Insurance Risk Management?

Question

Hi friends, i am doing a dissertation on Insurance Risk Management and i wan to know the details regarding what exactly is Insurance Risk Management?

Answer 1

Insurance is only one of the techniques to handle risk. You use insurance to transfer risk to another entity.

The broader term is risk management. Risk management is a structured approach to managing uncertainty through, risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources.

The strategies include transferring the risk to another party, avoiding the risk, reducing the negative effect of the risk, and accepting some or all of the consequences of a particular risk.

Some traditional risk managements are focused on risks stemming from physical or legal causes (e.g. natural disasters or fires, accidents, death and lawsuits).

Great resource is the Risk and Insurance Management Society

Answer 2

probably you are talking about reinsurance. Sharing a risk by insurers is reinsurance. Hope this helps.