Components of Risk
·
As a general principle,
insurance is only available for risks that are uncertain
·
It is the uncertainly
about the timing of death that makes death insurable
·
Level of risk is
determined by 2 criteria:
v The
probability of certain event happening
v The
extent of the event (severity), if it happens
·
The probability of
certain event happening: the probability that a certain person will die within
one year is calculated by actuary from
the past data collected and is made available as mortality table.
·
The mortality rate is a
chance of dying at a specified age based on the proportion of deaths among a specific
number of a sample population.
·
The probability of risk
to life for individuals will differ on the basis their age, medical well being,
family medical history, life style, job profile etc.
·
Life insurance
companies determine the level of risk based on past data (claims experience).
·
If the past data
indicates that the individual with certain age group are more prone to risk will
be considered to be higher for the age group
Thank you for sharing useful information about insurance necessary details and its benefits. This will help people who wants to buy insurance policy. For more details.Best insurance in UAE
ReplyDeleteThank you for sharing useful information about the components of life insurance. Approach us immediately for further information. " Best Life Insurance In UAE
ReplyDelete"