Let us have a close look at Pure and Speculative risks:
The latter are in the nature of betting or gambling where the risk is, to some extent, under the control of the person concerned, while a picture is not so. It is more in the nature of an Act of God. Insurance deals with only pure risks and not speculative risks.
Doubts and queries regarding this post is kindly and acceptable and kindly post your valauable comments.
Showing posts with label catastrophic risks. Show all posts
Showing posts with label catastrophic risks. Show all posts
Thursday, November 26, 2009
Fundamental and Particular risks
Let us a close look at Fundamental and Particular risks:
Fundamental risks are those that affect large populations while particular risks affect only specific persons. A train crash is fundamental risk while a theft is a particular risk.Life Insurance business deals with particular risks, but fundamental risks affect the life insurance company's experience, as many persons will be affected at the same time, when there is an earthquake, flood or riot.
Doubts are queries regarding this post is kindly acceptable please leave your valuble comments.
Fundamental risks are those that affect large populations while particular risks affect only specific persons. A train crash is fundamental risk while a theft is a particular risk.Life Insurance business deals with particular risks, but fundamental risks affect the life insurance company's experience, as many persons will be affected at the same time, when there is an earthquake, flood or riot.
Doubts are queries regarding this post is kindly acceptable please leave your valuble comments.
Dynamic and Static Risks
Let us have a close look at Dynamic and Static risks:
Dynamic risks are caused by perils which have national consequence, like inflation, calamities, technology, political upheavals, etc. Static risks are caused by perils which have no consequence on the national economy, like a fire or theft or misappropriation. Dynamic risks are less likely to occur than static risks, but are also less predictable. Static risks are more suited to management throught insurance.
Doubts or queries reagarding this post is kindly acceptable please post your valuable comments.
Dynamic risks are caused by perils which have national consequence, like inflation, calamities, technology, political upheavals, etc. Static risks are caused by perils which have no consequence on the national economy, like a fire or theft or misappropriation. Dynamic risks are less likely to occur than static risks, but are also less predictable. Static risks are more suited to management throught insurance.
Doubts or queries reagarding this post is kindly acceptable please post your valuable comments.
Critical or Catastrophic risks, Financial and Non-Financial Risks
Let us have a close view about Critical or Catastrophic risks, Financial and Non-Financial Risks:
Critical or Catastrophic risks are those which may lead to the bankruptcy of the owner. It would happen if this total, like in tsunami, wiping out everything. It can also happen if the deceased person was heavily in debt. Important risks may bot spell doom, but may upset family or business finances bdaly, requiring a lot time to recover. The adverse effects of an economic recession is one such. Less damaging are Unimportant risks, life temporary illness or accidents.
Finalcial and Non-Financial Risks:
Insurance is concerned only with financial risks
If you have any doubts or queries please kindly leave your valuable comments on this post.
Critical or Catastrophic risks are those which may lead to the bankruptcy of the owner. It would happen if this total, like in tsunami, wiping out everything. It can also happen if the deceased person was heavily in debt. Important risks may bot spell doom, but may upset family or business finances bdaly, requiring a lot time to recover. The adverse effects of an economic recession is one such. Less damaging are Unimportant risks, life temporary illness or accidents.
Finalcial and Non-Financial Risks:
Insurance is concerned only with financial risks
If you have any doubts or queries please kindly leave your valuable comments on this post.
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