7 Insurance Risk

Insurance so that customers feel comfortable joining the insurance program. Insurance must be smart to control the risks so that the business is profitable so that customers also feel comfortable joining the program offered. Before further recognizing the types of risks that exist in the insurance industry, customers need to understand first the benefits of the insurance itself. Here's the full review.

In insurance risk can be caused by personal activity (personal activity) or business activity / business (business activity). Examples of personal risks are sickness, accidents, or financial risks caused by a person's death. Examples of business risks are bankruptcy, loss or damage caused by various things such as fire, natural disaster and so on. This also applies to health insurance, car insurance, or travel insurance.

Risk Classification in Insurance
In risk insurance (risk) is classified into several types, namely:

1. Pure Risk (Pure Risk)

Characteristics of pure risk is the risk if it does happen would cause losses and if it does not happen it will not cause losses or will not generate profits. This means that in the sense of pure risk, the loss must occur. Examples of these risks are fire, accident, bankruptcy and so forth.

2. Speculative Risk

Contrary to pure risk, speculative risk still contains two possibilities if the event is considered a true risk occurs. For example, when investing shares in the stock exchange, the event or the investment process will lead to speculative risks, on the one hand there is a possibility of profit financially and on the other side there is a risk of loss.

3. Specific Risk (Particular Risk)

Specific risk is a risk that impacts and causes only affect the local environment (personal) both in quantity and quality. An example is unemployment or a thief. When a person steals then the risk inflicted only affects the individual.

4. Fundamental Risk (Fundamental Risk)

Contrary to special risks, the fundamental risks will have a huge impact. This risk can be caused by factors or certain parties such as natural disasters, government policies and so forth.

5. Individual Risk

Individual risk is a variety of possibilities that occur in everyday life that can affect a person's financial capacity, wealth and risk of responsibility. Individual risk can be divided into several groups, namely personal risk, property risk and liability risk. In personal risk is often associated with the influence of a thing or possibilities that will directly affect certain individuals, such as a person's finances. Examples of personal risks are physical disability, loss of employment, death and so on.

6. Property Risk

It is a loss associated with the possession of an object due to loss, theft or damage. The risk of property can be categorized again into two types: direct losses (direct losses) and indirect (consequential) losses.

7. Risk of Liability (liability risk)

It is a risk of responsibility that we must give to others. In other words, this risk to bear the loss of others due to the act or the things we cause. For example, in the event of an accident, when you hit someone else it is called a risk of liability

Associated with the various risks described above, then there are some frequently asked questions related to insurance. Are all of the above risks transferable to the insurance company? Then the answer is can not. Only fundamental risks and pure risks can be insured under certain conditions, as follows:

• Risk must occur by chance and unpredictability
• Risks that can be borne should be homogeneous and common
• The impact of these risks can be assessed by money or financially
• There must be an insured or insured object such as property, sickness, loss and so forth.
• The insured object does not conflict with applicable rules and public interests. For example, drugs can not be used as an insurance object.
• Premiums charged should be in accordance with the level of insured risk. Although the coverage may exceed the actual price or interest, but only in certain limits (double insurance).