About This Chapter
Insurance Solutions in Risk Management - Chapter Summary
This chapter is all about risk management insurance solutions. Follow along with our expert instructors to see which insurance coverage options are offered for different risk types. As you work through the chapter, you'll also compare insurance policies, risk management strategies and the concept of maximum probable annual loss. The chapter's flexible online format makes it easy to review these topics whenever you have free time in your schedule. Use any computer or mobile device to access the materials, and be sure to take the accompanying self-assessment quizzes to reinforce your understanding of the information. By the end of the chapter, you should be able to:
- Understand risk management and insurance policies
- Compare insurance coverage options for various types of risk
- Differentiate between insurable and uninsurable risk
- Define risk and return insurance
- Recognize effective strategies for risk management
- Explain the applications of maximum probable annual loss (MPAL)
1. Risk and Return in Insurance & Risk Management Strategies
In this lesson, we'll define risk and return as it relates to the insurance industry, and you'll understand the correlation between the two. We'll also explore three risk management strategies and give examples of each.
2. Ways to Manage Risk: Insurable and Uninsurable Risk
Risks abound in life and in business. However, most risks can be managed. In this lesson, you'll learn about ways to manage risks. You'll also learn the difference between insurable and uninsurable risks. A short quiz follows.
3. Understanding Insurance Policies and Risk Management
Obtaining insurance is one of the most common methods of risk management. In this lesson, you'll learn about insurance policies and some key concepts related to insurance. You'll also have a chance to take a short quiz.
4. Insurance Coverage for Various Types of Risk
Businesses operate in a world of risk. One of the best ways to manage risk is through insurance. In this lesson, you'll learn about the types of insurance coverage available to businesses to help them manage their risks.
5. Maximum Probable Annual Loss (MPAL): Definition & Applications
In this lesson, we'll define maximum probable annual loss. You'll learn about how underwriters use MPAL and other factors to calculate insurance premiums. Then, we'll explore the steps in calculating MPAL.
6. Catastrophe Bonds: History & Uses
This lesson first defines catastrophe bonds. Then we'll go over a brief history of these securities before discussing the fundamentals of how they are used for risk management purposes.
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