2. INSURANCE RISK MANAGEMENT INSURANCE RISK MANAGEMENT INSURANCE RISK MANAGEMENT Separation or CombinationRisk Transfer Risk Avoidance Loss Control

3. NextPrevious INSURANCE RISK MANAGEMENT Risk Measurement Identification of the risk exposures Find the best method Apply the best method of risk prevention control method.

4. NextPrevious INSURANCE RISK MANAGEMENT Measuring Risk to know; Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK Actual value of the Investments and projects Economic Feasibility of the investments The special hazards The most efficient risk control method to use The company savings (e.i premium, tax)

5. NextPrevious INSURANCE RISK MANAGEMENT Risk Measurement Methods Underwriting Loss Control check list Risk Analysis Questionnaires Financial Statement overview and special hazards The Flow Chart Method On-site inspections Periodic employee interactions Statistical records of previous losses Analysis of the enviroment of the plant or projects Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK

6. NextPrevious INSURANCE RISK MANAGEMENT The Best Method of Risk Measurement for identification Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK No single method or procedure is the best method to find the risk identification and fullproof. All industries may require several methods at the same time. Size,nature of business,in-house expertize are the main parameters

7. NextPrevious INSURANCE RISK MANAGEMENT Dimensions of Risk Measurements Loss-Frequency Measure Loss-Severity Measures Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK

8. NextPrevious INSURANCE RISK MANAGEMENT Risks are to be measured? Property losses General Liability losses Personnel Losses Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK

9. NextPrevious INSURANCE RISK MANAGEMENT Why is the risk control if can not be avoided? Make losses more predictable Minimizing the expected losses Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK

10. NextPrevious INSURANCE RISK MANAGEMENT Avoiding and Controlling A non-transferable and/or unretainable risk is to be avoided by the company or, Measured risk can be evaluated and loss prevention methods can be applied. Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK

11. NextPrevious INSURANCE RISK MANAGEMENT Loss Control Measures The cost The benefits The evaluation Decision to implemet the control method Periodic Controls Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK

12. NextPrevious INSURANCE RISK MANAGEMENT Separation and Combination Dividing the risk exposure where the final measuremet and study has been completed for a final decision Merging and combining the risk exposures to be controlled at a maximum level. Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK

13. NextPrevious INSURANCE RISK MANAGEMENT Risk Transfer Methods Retention Captives Purchasing Employee benefits plans Purchasing Insurance Cover Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK

14. NextPrevious INSURANCE RISK MANAGEMENTRetention The most passive and unplanned metod to be applied as a risk control after the full risk measuremet and surveys are completed for; Risks with the known cost if transfered. Risks with a known expected loss Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK

15. NextPrevious INSURANCE RISK MANAGEMENTCaptives Creating and establishing a reinsurance company by the insured in overseas to obtain; savings up to 25% of the annual insurance premium payments depending on the loss history. tax benefits in overseas up to 5% tax vs local of 40% tax payments A possible foreign Investment Income up to 10% from the tax and premium savings Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK

16. NextPrevious INSURANCE RISK MANAGEMENT Employee Benefits Purchasing full coverage for personnel for accidents,travel,and retirement where the company will face the losses. Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK

17. NextPrevious INSURANCE RISK MANAGEMENTInsurance The Purchased coverage as per the final risk mesaurement and control method for the risk exposures by knowing the ; Exposures Premium expense Advantages The best terms and conditions of the coverage Instructions: Delete sample document icon and replace with working document icons as follows: Create document in Word. Return to PowerPoint. From Insert Menu, select Object… Click “Create from File” Locate File name in “File” box Make sure “Display as Icon” is checked. Click OK Select icon From Slide Show Menu, Select Action Settings. Click “Object Action” and select “Edit” Click OK