保险学（第二版）-Treisch12e_Ch06.ppt

Insurance as a Risk Management TechniqueChapter 6 Chapter Objectives Define insurance and explain how it differs from other methods of risk transfer Identify situations that give rise to insurable interest and explain how this principle supports the principle of indemnity State how the subrogation process works and how it is useful Determine what makes a risk insurable List the legal requirements of a contract and describe the distinguishing legal characteristics of insurance contracts Differentiate between insurance agents and brokers and describe the sources for their authority Define social insurance and explain the basic principles that underline most social insurance programs Describe the central costs and values of insurance to society The Nature of Insurance Insurance involves not only risk transfer but also pooling and risk reduction Pooling: The sharing of total losses among a group Risk reduction: A decrease in the total amount of uncertainty present in a particular situation Insurers accomplish this by combining a group of objects situated so that the aggregate losses become predictable within narrow limits Overall risk for the group is reduced, and losses that result are pooled Usually through the payment of an insurance premium Insureds transfer various risks to the group and exchange a potentially large uncertain loss for a relatively smaller certain payment (the premium) The Nature of Insurance Gambling and insurance are exact opposites Gambling creates a new risk where none existed before Insurance is a method of eliminating or greatly reducing an already existing risk Insurance is usually implemented through legal contracts, or policies Insurer promises to reimburse the insured for losses suffered during the term of the agreement Implicit is the assumption that the insurer will be able to pay whatever losses may occur Important to consider the financial condition of the insurer Principle of Indemnity One of the most important