INSURANCE RISK MANAGEMENT

1
INSURANCE RISK MANAGEMENT

Risk Avoidance
Loss Control
Separation or Combination
Risk Transfer
2
Risk Measurement

• Identification of the risk exposures
• Find the best method
• Apply the best method of risk prevention control
  method.

3
Measuring Risk to know

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• Actual value of the Investments and projects
• Economic Feasibility of the investments
• The special hazards
• The most efficient risk control method to use
• The company savings (e.i premium, tax)

4
Risk Measurement Methods

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• Underwriting Loss Control check list
• Risk Analysis Questionnaires
• Financial Statement overview and special hazards
• The Flow Chart Method
• On-site inspections
• Periodic employee interactions
• Statistical records of previous losses
• Analysis of the enviroment of the plant or
  projects

5
The Best Method of Risk Measurement for
identification

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• No single method or procedure is the best method
  to find the risk identification and fullproof.
• All industries may require several methods at the
  same time.
• Size,nature of business,in-house expertize are
  the main parameters

6
Dimensions of Risk Measurements

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• Loss-Frequency Measure
• Loss-Severity Measures

7
Risks are to be measured?

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• Property losses
• General Liability losses
• Personnel Losses

8
Why is the risk control if can not be avoided?

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• Make losses more predictable
• Minimizing the expected losses

9
Avoiding and Controlling

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• A non-transferable and/or unretainable risk is to
  be avoided by the company or,
• Measured risk can be evaluated and loss
  prevention methods can be applied.

10
Loss Control Measures

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• The cost
• The benefits
• The evaluation
• Decision to implemet the control method
• Periodic Controls

11
Separation and Combination

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• Dividing the risk exposure where the final
  measuremet and study has been completed for a
  final decision
• Merging and combining the risk exposures to be
  controlled at a maximum level.

12
Risk Transfer Methods

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• Retention
• Captives
• Purchasing Employee benefits plans
• Purchasing Insurance Cover

13
Retention

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• The most passive and unplanned metod to be
  applied as a risk control after the full risk
  measuremet and surveys are completed for
• Risks with the known cost if transfered.
• Risks with a known expected loss

14
Captives

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• Creating and establishing a reinsurance company
  by the insured in overseas to obtain
• savings up to 25 of the annual insurance premium
  payments depending on the loss history.
• tax benefits in overseas up to 5 tax vs local of
  40 tax payments
• A possible foreign Investment Income up to 10
  from the tax and premium savings

15
Employee Benefits

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• Purchasing full coverage for personnel for
  accidents,travel,and retirement where the company
  will face the losses.

16
Insurance

• Instructions
• Delete sample document icon and replace with
  working document icons as follows
• Create document in Word.
• Return to PowerPoint.
• From Insert Menu, select Object
• Click Create from File
• Locate File name in File box
• Make sure Display as Icon is checked.
• Click OK
• Select icon
• From Slide Show Menu, Select Action Settings.
• Click Object Action and select Edit
• Click OK

• The Purchased coverage as per the final risk
  mesaurement and control method for the risk
  exposures by knowing the
• Exposures
• Premium expense
• Advantages
• The best terms and conditions of the coverage