insurance risk management

Accident-At-Work-Claim

Accidents at work what to do.

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What Is Risk Management?

I changed my major from Accounting to Risk Management becaus someone told me I should due to my personality not fitting Accounting. The only problem is I do not really know what Risk Management is. My family friend is a Risk Manager and she works for an insurance company… So can someone explain the whole idea to me?

Each business entity is exposed to potential losses from insurable risks. For example, a restaurant can have the building burn down due to fire, employees can get injured on the job and patrons can slip and fall on the premises. All of these events happen often.

A risk manager attempts to find ways of either transferring the risk from these potential losses to another entity (i.e., purchase insurance) or mitigating risks of losses by implementing loss control efforts.

Usually, the risk manager does both of these. At the same time, the risk manager is attempting to find the most cost-effective way of accomplishing it.

For example, the risk manager may decide that it makes the most sense to purchase workers compensation insurance, retain all of the risk of loss from slips & falls, and only retain the first $25,000 of losses from fire damage to the property.

Has anyone taken the ARM 54 (Associate in Risk Management) exam? What can I expect? How difficult is it?

I went to law school (briefly) and am working towards my MBA. I have been in the insurance industry for about 6 years.
I've been in the class for about a month and a half and am scheduled to take the exam in about three weeks.

ARM 54 is like a single undergraduate college course (although they seem to think it is graduate level). They spoon-feed you the material with the Course Guide, giving you an outline, objectives, and sample questions. The exam is extremely similar to the sample questions. They really want you to pass.

I like the ARM series because it gives you the perspective of the insurance buyer, whose wisest use of funds is not necessarily to buy insurance. As an insurance company employee, you don't normally get that perspective from the job.

If you are taking MBA level classes, you will find ARM to be reasonably easy.

why did honeywell pursue integrated risk management?

what were the upsides of an integrated risk management program compared to their previous hedging and insurance program?

Eventually, all larger companies will pursue integrated risk management, because it's more cost effective.

A question about the risk management.?

If you are businessman, please show that how to reduce risks on your business, please provide non-insurance methods on Risk Management. (Including example)
There have 6 methods: risk advoidance,risk control,risk retention,risk transfer,incorporate and hedging

It would depend of the type of business you are in – ex risk avoidance could be keeping up to date on all your equipment to ensure employees are not injured while on the job, etc…..

Why do insurance companies favor reforms that limit noneconomic damages in tort cases?

I'm guessing it would be easier to cover and big picture it could be more risky for the insurance company. But if you have experience in the insurance or risk management could you explain this in more depth? Please list your credentials though.

Noneconomic damages mean, not actual dollar losses. It's pain & suffering, puntative damages, etc.

Most of the time, noneconomic damages are MORE than actual damages. Lawyers are happier suing, because they get 1/3 of the TOTAL, so the more they can make the insurance company pay, regardless of actual damages, the more they make.

Juries don't usually think with their brains – they can easily be pursueded to award huge damages, even if the defendent was not guilty of any wrongdoing. Example: dead baby claims for obstetricians. It doesn't MATTER if the doctor messed up, any jury in the world, is going to side with the grieving parents.

Limiting noneconomic damages means smaller claims payments, which means lower premiums for the other insureds, and more ease of predicting profits for the company.

CIC (Certified Insurance Counselor) vs. ARM (Associate in Risk Management)?

Which one carries more weight with regards to credibility in the Property & Casualty insurance industry? And is there a suggested time frame to go after it (i.e. 1 year or 2 years of experience)? I currently work for a transportation insurance agency and have only worked in the insurance industry for about 4 months now, but I was in the transportation industry for about 3 years.

Do you think that it would matter if I went after these designations now or waited? I don't want to waste anytime, but a few have told me that it may be best to wait a few years…I am not married yet…nor do I have a family…so I wanted to knock a few of these designations out before that happened, and then go after my CPCU…

Any suggestions?

Thank you in advance for your help!!

I don't think it matters much.

what is the risk management plan for fire insurance?

Simple…what do you have that will or could catch on fire?

What things or conditions do you have that could cause a fire to happen?

What methods or means do you have to prevent a fire from happening. (transfer of risk)

what precautions are in place to protect the property or replace the property if a fire happens. (self insurance or Insurance)

What is the value of tangible insurance protection that is being illustrated?

As treasurers and risk managers are discovering, stand-alone terror coverage now costs as much as all other forms of property insurance combined. Until recently, a $100 million property policy (including terrorism coverage) might cost as little as $200,000, says Bob Smith, Northeast regional executive officer for insurance broker Willis. Today, the same policy costs anywhere from $400,000 to $600,000 — and excludes terrorism risks. To get an added $25 million of terrorism coverage, Smith says, a buyer might have to pony up an additional $500,000.

That's putting terroism coverage out of reach for many companies. Even if insurers come down on their prices — and that's not real likely — few mid-sized businesses will be able to afford terror coverage. "You could sell me the Hope Diamond at 50 percent off, and I still couldn't afford it," says David Mair, director of risk management for the United States Olympic Committee (USOC) and president of the Risk and Insurance Management Society

Where did you plagiarize this from? How is anyone really able to cover the potential damage from a terrorist act and why should it be a separate rider or policy? Doesn't make much sense to me.

define risk management (auto insurance)?

The process of avoiding, eliminating, transferring or reducing the consequences of a loss. Insurance is just one element of risk mgt. You could choose to buy a vehicle tracker…this will reduce the risk of the car being stolen and not being recovered.