Insurance risk is an accident due to which the policyholder loses or incurs losses on a particular object (it is indicated in the insurance contract). Losses can be expressed in varying degrees of severity. And if this accident falls into the category of insured events, then the company (insurer) is obliged to reimburse you all. Based on this, it becomes clear that insurance risk is calculated based on the possibility of its occurrence.
The insurance contract is not contingent, even if the insurance risk never occurs. But how to understand that it happened? The signs defining insurance risk are the probability and chance of its occurrence.
For convenience, a classification of some aspects has been developed, evaluating which, you will understand whether it is possible to consider what happened as such a risk:
It is assumed that neither of the parties, whether the insurer or the subject of insurance, knows about the exact occurrence of the risk and its size.
To determine the insurance premium, you need to turn to statistics that summarize and compare the homogeneous events of the plan you are interested in.
In no case should insurance risk be fictitious, i.e. a figment of your imagination.
Massive events such as natural disasters are not considered at all.
The ability to assess damage.
The classification of insurance risks can be the most diverse:
- by hazard sources:
"Spontaneous" insurance risks, i.e. those associated with any element: earthquakes or floods (including risks of anthropogenic nature, such as explosions, fires, etc.);
related to violation of the law (robbery, theft, etc.);
long-term life insurance and retirement insurance .
- in terms of liability:
individual, which are characteristic of certain types of property, which are unique (antiques);
universal, which implies the standard amount of liability of the insurer.
- by event assessment:
allowable;
critical
catastrophic.
There are a large number of approaches to classify them, but for the most part there are certain types of insurance risks:
civil liability. This risk occurs if you work, for example, in hazardous work. Companies are fully able to insure their civil liability before employees or partners or other persons;
those that are inextricably linked to transport. They are to insure the cargo or rolling stock;
environmental risks;
special risks. They apply to exclusive items that have no analogues in the world. Often applicable to jewelry, works of art, legendary musical instruments and more;
general technical risks. Sudden emergency situations or malfunctions in the operating mode of technical equipment, which, with their consequences, threaten health or directly, even the lives of people;
investment risks. They concern mainly the economically active part of the population, which constantly plays on the stock exchange. This insurance risk is associated with a shortfall in the planned or expected profit, and in some cases with a complete deprivation of financial investments when financing projects. This risk group is divided into subgroups:
1. Credit.
2. Entrepreneurial.
3.Financial.
4. Commercial.
In conclusion, I would like to say that the insurance risks described above are a kind of platform that should be taken into account when determining your individual situation. All risks are necessarily interconnected in some way, so you need to clearly look at which direction your case belongs to. The ability to pay the insurance amount and, of course, its exact size depends on this.