Fundamentals of Insurance - 2

Explore how uncertainty about future events forms the basis of risk. Learn how risk level depends on incident frequency and severity, and how hazards increase perils.

Understand how uncertainty and risk depend on frequency and severity, with examples of high frequency low severity car accidents and low frequency high severity aircraft accidents.

Perils are the risks we insure against, such as fire, water damage, and windstorms, while hazards are the factors, both physical and moral, that increase these risks.

Explore risk pooling and risk sharing, including co-insurance, as mechanisms to fund losses, spread risk, and promote fairness and stability in the insurance industry.

See how risk pooling collects premiums to cover losses and operating expenses, uses the law of large numbers to set fair, profitable premiums, and applies discrimination factors.

Explore risk sharing in insurance, from retention limits and pool management to co-insurance with insurers and policyholders, using excess or deductible to control small losses.

Understand dual insurance, where two or more policies cover the same risk, accidental or deliberate, and self-insurance, where a firm bears losses and retains a portion, such as the $50,000.

Explore the primary classes of general insurance, or non-life insurance, and gain a straightforward overview of the main policy types and their primary sectors of application.

Understand property insurance for tangible assets, covering buildings, contents and stock against fire, theft, glass, livestock, and money, with policies defined by named perils or exclusions.

Explore engineering insurance and its key coverages, including contractors all risk, installation phase protections, machinery breakdown, boiler explosion, and third party property injuries or fatalities to safeguard projects and operations.

Explore how liability insurance protects individuals and businesses from legal claims. Examine employees compensation, public liability, product liability, and professional indemnity to understand coverage and financial protection.

Explore motor insurance essentials, including comprehensive and liability coverage, for personal, motorcycle, and commercial vehicles, safeguarding against vehicle damage, property damage, and bodily injury.

Explains health insurance as a financial protection against medical expenses, covering personal accident, sickness, medical care, payment protection, and critical illness to safeguard income and living standards.

Explore pecuniary insurance and its coverages, including fidelity guarantee, legal expenses, credit insurance, business interruption, and political risk. Protect intangible assets and financial interests against revenue losses.

Explore marine and aviation insurance coverage for vessels, cargo, and aircraft, including hull, cargo, freight, and liability protections against perils like collision, theft, and fire.

Package multiple coverages into a single policy, providing comprehensive protection for household and contents, public liability, and travel, including medical expenses, evacuation, luggage loss, and trip cancellations.

Explore the primary and reinsurance markets and the roles of insurers, policyholders, agents, brokers, underwriters, claims adjusters, reinsurers, regulators, actuaries.