Introduction to General Insurance
The concept of risk• Risk is the ‘effect of uncertainty on objectives’—the  chance of something happening.• In the context...
Strategies for handling risk• Risks can be:  –   accepted  –   avoided  –   reduced  –   transferred.                     3
What are insurable risks?• For a risk to be insurable:   – the loss must be fortuitous (accidental)   – there must be an i...
Reinsurance• Reinsurance allows insurers to reduce their  exposure to particular risks by transferring part of  the risk t...
Insurance in society• The functions of insurance in society include:   – bearing risk   – stimulating business enterprise ...
Session 2 – The regulatory framework• This session covers:   –   key insurance regulators and organisations   –   insuranc...
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Introduction to General Insurance

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  • Introduction to General Insurance

    1. 1. Introduction to General Insurance
    2. 2. The concept of risk• Risk is the ‘effect of uncertainty on objectives’—the chance of something happening.• In the context of insurance it means the possibility of an adverse outcome from a particular event.• Insurance is only concerned with adverse outcomes that involve the risk of financial loss. 2
    3. 3. Strategies for handling risk• Risks can be: – accepted – avoided – reduced – transferred. 3
    4. 4. What are insurable risks?• For a risk to be insurable: – the loss must be fortuitous (accidental) – there must be an insurable interest at the time the loss occurs – the loss must not be excessive or catastrophic – it must not be against the public interest. 4
    5. 5. Reinsurance• Reinsurance allows insurers to reduce their exposure to particular risks by transferring part of the risk to a reinsurer, thereby increasing their capacity to accept additional risks;.• The types of reinsurance methods are: – treaty – facultative. 5
    6. 6. Insurance in society• The functions of insurance in society include: – bearing risk – stimulating business enterprise – freeing up capital – encouraging efficiency in commerce by providing peace of mind and security – promoting loss prevention – assisting business survival. 6
    7. 7. Session 2 – The regulatory framework• This session covers: – key insurance regulators and organisations – insurance laws and consumer protection legislation – other important Acts and Codes – complaints and dispute procedures. 7
    8. 8. 8
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