Risk management: Management of various risks that can be subject to a commercial firm or association. It includes an analysis of all risks to assess the probability of damages and choose options for more efficient management or minimizing losses. These options usually include reduced and eliminate risk through security measures, buying insurance and self-insurance.
Capital based on risks: the need to capitalize insurance companies in accordance with the inherent risks of the type of insurance they sell. Types of increased risk insurance, responsibility, in contrast to property business, as a rule, require a higher level of capital.
Salvation: Damaged property that the insurer takes over to reduce its losses after paying a claim. Insurers are entitled to dispose of property in respect of which they presented claims, for example, strongly damaged cars. Insurers who paid claims for shipments lost to the sea now have the right to return sunken treasures. Recycling fees are the costs associated with the return of this property.
Schedule: A list of individual elements or groups of elements to which one policy is distributed, or a list of specific benefits, fees, loans, assets or other specific elements.
Severity: loss size. One of the criteria used in the calculation of the rates of insurance premiums.
Soft market: Wednesday in which insured is abundant and sold at a lower price, also known as the buyer market.
Payment: The ability of insurance companies to pay for the requirements of insurers. Regulatory acts contributing to increased solvency include minimal requirements for capital and surplus, accounting rules, investment limits and corporate activities of insurance companies, financial coefficient tests and financial disclosures.
Risk distribution: Sale of insurance in several areas of several policy holders to minimize the danger that all policy holders will incur damages at the same time. Companies are more likely to insure risks that suggest a good risk scatter. Flood insurance is an example of poor risk allocation, because people who most likely buy it are people living near rivers and other reservoirs that are injected. You can purchase Smart Invest from us in our forum everything is simple.