Mark: 25 Question 1: Basic principles and concepts of risk management

Task 2
For Midterm exam

Group: MM-55i
Full name: Bozorov |Elyor Sunnatillo o’g’li
Rules:

• 
  No plagiarism
  
• 
  No copy from your friends
  
• 
  Only with your own words
  

Mark: 25%

Question 1: Basic principles and concepts of risk management
Evaluating risk is main task of insurer. Risk in insurance means dangers to insured and pay for the losses. There are 2 types of factors cause the damage: material and immaterial. Material factors risks are not related to the assured. Immaterial factors are risks directly connected with insured person.
Risk state are factors that affect the level of risk. All risks known to the insured are reported to the insurance company. This is important in risk assessment. Analysis of risk situations is a function of the surveyor or adjuster. It plays an important role in the decision of the insurance company on the conclusion or non-conclusion of the insurance contract, as well as in the payment of insurance indemnities and premiums. Surveyor is an employee of an insurance company that inspects insured property. The insurance company decides to conclude an insurance contract based on the conclusion of the surveyor.
Underwriter is chosen by insurers they make portfolio of insurance company (Insurance portfolio is the sum of insurance premiums received by an insurance company. The number of insured objects, the amount of insurance contracts also means the concept of insurance portfolio) they make decision to accept or deny offers for insurance contract. Underwriting is acceptance of risk in return for payment. Process of underwriting begin with to take application for insurance and take information about risk and assess them and decide or not to make insurance contract.
Occurrence of risk for insurance company: negative, zero, positive
Negative occurrence of risk means that damage (indemnity pay to the insured person) is higher than insurance premiums. Positive occurrence of risk means that damage is lower than amount of insurance premiums. Zero risk occurrence of risk damage equal to premium.