BUISENESS MANAGEMENT
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To prevent bad things from ever happening
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To help you get better when you are sick
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To manage risks by sharing them with other members of insurance companies
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To help you refinance your loabs
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Detailed explanation-1: -Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
Detailed explanation-2: -Insurance is a key aspect in risk management processes due to its invaluable benefits like: Safeguarding from financial loss: Business can be impacted by several factors like theft, natural disaster, or accidents. Insurance can be a crucial aspect in avoiding financial losses due to such threats.
Detailed explanation-3: -By sharing the risk, you, your insurance company, and doctors / hospitals are protected from individually bearing the costs for those who need a lot of health care or have medical emergencies during the year.
Detailed explanation-4: -Risk sharing, also known as “risk distribution, ” means that the premiums and losses of each member of a group of policyholders are allocated within the group based on a predetermined formula.