Tuesday, January 17, 2012

Insurance is a risk management strategy

A business always fears uncertainty or uncertain risk factors that constantly loom over head.  Hence all business resorts to insuring whatever aspect that can be insured. In order insure the company charges a premium which is the charge paid by the policy holder.  The insurer compensates the policy holder as its service and binding.

The risk cover guarantee is prefixed and the cover is granted based on terms and condition set by the insurer.  The business has positive impact on people and industry by covering their risk in order to prevent a financial catastrophe.

The basic risk cover is against accident, fire, theft, fraud. Then there are special types of insurance applicable to big business and major institutions. The terms and conditions differ depending upon the type of insurance.

All over the World insurance business is booming both in public sector and private sector.  Hence marketing and publicity has become a major strategy for these companies. 

Health insurance is also a major sector providing health expense cover for major surgical treatments and hospitalization charges. Small accident benefits are also covered.  Life insurance is the biggest service sector in risk management. The benefit accrues to the policy holder’s family in case untimely demise.

There are specific guarantees as well as comprehensive risk cover guarantee in case of latter the premium applicable is more.

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