Category: Insurance Risk

The Many Facets of Underwriting

The Many Facets of Underwriting The Many Facets of Underwriting

Insurance has been around since ancient times when it’s believed it first became popular as a risk-sharing scheme between ship owners carrying goods across the oceans and investors willing to provide indemnity for these goods and the ships carrying them for a fee. But even before this, a form of insurance can be found written […]

Speculative Risk Versus Pure Insurance Risk

Speculative Risk Versus Pure Insurance Risk Speculative Risk Versus Pure Insurance Risk

A guy walks up to a blackjack table in a casino and places a ten-dollar chip in the betting area in hopes of besting the dealer. He’s taking a risk that he may lose that $10, but also has the chance of earning $10 if he has a winning hand. He can even earn $15 […]

Writing Insurance Requires Knowing All About Insurance Risk

Writing Insurance Requires Knowing All About Insurance Risk Writing Insurance Requires Knowing All About Insurance Risk

Simply defined, risk is the possibility of injury or loss. Insurance risk revolves around this potential for loss or injury and an insurance contract represents a risk-sharing between two entities; the insured and the insurer. A synonym for risk often used in the Property & Casualty (P&C) insurance industry is “peril.” A homeowners’ insurance policy, for example, may […]

Insurance Risk – The Most Important Factor in Insurance Underwriting

Insurance Risk – The Most Important Factor in Insurance Underwriting Insurance Risk - The Most Important Factor in Insurance Underwriting

In the insurance industry, each type of insurance deals with its own types of insurance risk. Insurance risk can be defined simply as the possibility of an insured suffering a financial loss that’s covered in a policy issued by an insurance company or other insurer. As an insurance company underwriter, your job is to assess […]

The Crucial Role of Underwriting

The Crucial Role of Underwriting The Crucial Role of Underwriting

Underwriting is a key factor in the world of finance, significantly affecting the businesses of insurance, loans, and investments. Underwriting services may be provided by large institutions such as insurance companies, banks, and investment houses, each of which guarantees payment in the event of damage or a financial loss occurring. Since each of these businesses […]

Homeowner’s Insurance Risk Factors

Homeowner’s Insurance Risk Factors Homeowner's Insurance Risk Factors

Customers buy a homeowner’s insurance policy in order to minimize the risk to which they are exposed should an event occur to their homes that causes damage, destruction, or other financial loss such as theft or liability suits. By underwriting the policy, your company is assuming most of the risk (minus the deductible amount) in exchange for […]

Local and Global Insurance Risk

Local and Global Insurance Risk Local and Global Insurance Risk

Lloyds of London is, contrary to popular belief, not an insurance company but rather an insurance marketplace where insurance buyers and sellers meet to do business. Originally started in a London coffeehouse during the 17th century, the prevalent insurance risk at the time was the safety of cargo ships sailing across the oceans carrying goods. […]

Insurance Risk – The Driving Force Behind Insurance Underwriting

Insurance Risk – The Driving Force Behind Insurance Underwriting Insurance Risk - The Driving Force Behind Insurance Underwriting

The entire insurance industry revolves around the concept of insurance risk. Without insurance risk, there would be no insurance business. Whether it’s film star Betty Grable’s legs that were insured for $1,000,000. back in the 1940s or Bruce Springsteen’s $6 million insurance policy on his voice, where there’s a potential for financial loss, there’s usually […]