Risk And Insurance Essay

Risk is defined by the probability of injury, harm, loss or danger. We all take risks every day, and don’t even think about implications.

The cost of health insurance has changed drastically over the years as it has become more expensive. Depending on personal characteristic, the cost of health insurance may vary. For instance, as individuals grow older the more expensive it becomes. In this case, health insurance is more costly because “older individuals require more health care” therefore “the cost of providing health care is rising” (Madura &Atlantic, 2012). Not only does this affect the high cost of health insurance, but the number of individuals uninsured. As stated by Madura and Atlantic (2012), “about one in every five workers is uninsured” and has increased since then because health insurance has become unaffordable. As a result, individuals tend to seek health care elsewhere as they can no longer

Risk: A risk is the chance, high or low, that any hazard will actually cause somebody harm. (the likelihood of it happening).

Safety checks should be carried out to eliminate the risk of putting the safety of people attending a sporting event at risk.

One financial problem the healthcare industry is facing right now is healthcare collections. Healthcare collections have always been a financial problem to healthcare industries because of nonpayment from the uninsured and individuals who are uneducated about their health plans. Nonpayment to healthcare industries means a loss of revenue. A loss of revenue means that health care industries may run the risk of exhausting their financial resources and become unstable. This financial problem is very typical in the healthcare industry.

In the words of the erstwhile Finance Minister, Morarji Desai: Whereas Life Insurance Corporation will always bear in mind that its primary obligation is to its policy holders whose money it holds in trust, and will never lose sight of the fact that, as a single investor in India, it has to keep before it the investors of the community as a whole. It will, therefore, invest in ventures which further the social advancement of the country. Its funds will, as far as practicable, be invested for the entire good of the country. The following factors are essential for an ideal insurance policy:

For many people risk is an accepted part of everyday life. Every day activities such as catching the bus, travelling on holiday, playing football, setting up home and starting a family all carry some element of risk.

An individual’s willingness to pay for insurance is dependent on their perceived health state and probability of falling sick. Most individuals are risk-averse and value certain utility more than expected utility which involves an element of risk. In order to eliminate the risk individuals will have to give up some money in the form of premiums.The horizontal distance between the expected utility and the certain utility is the market for insurance.

We are all familiar with risk. In fact, it is a key component in our everyday material life and we often manage it automatically either when dealing with mundane tasks or major hazards.

When we delve into the word 'risk ', we find that it has a multitude of meanings, and that it is nowhere near as clear and precise as the advocates of traditional risk assessment assert, for example Hansson (2002) identifies five different common uses for the word risk, and Ekberg points out a "proliferation of risk definitions" and a whole range of different understandings of risk (2007 p345).

Currently, the issue of health insurance has been a bone of contention for the public regarding whether the United States government should provide this health plan or not. People often possess different perspectives and refer to pros and cons on both sides of the spectrum. While some believes a universal healthcare system will set a foundation for a lower quality of service, increasing governmental finance deficit, and higher taxes, others do not hold the same thought. A universal healthcare system brings enormous advantages rather than disadvantages, such as all-inclusive population coverage, convenient accessibility, low time cost, and affordable medical cost, all of which not only provide minimum insurance to the disadvantaged but also improve the efficiency of medical resources distribution.

Have you ever thought for a moment if you got an accident and you are not health insured? What this mean? It means help of medical expenses and hospitalization charges. Health insurance is simply the risk of incurring any sort of medical expenses. Unfortunately, only 6 out of 10 people think that health insurance is important (Blakely). There are two contrasting viewpoints regarding compulsion of health insurance at government level. The debate of health insurance to be required by law opens up many debates. Several people perceives it a trouble: many think it is beyond access of low income group and other think that health insurance provides security to them. I believe health insurance is an essential part of living and is a precautionary

There is no single definition of risk. Many insurance authors traditionally have defined risk for uncertainty. A risk is an uncertainty concerning the occurrence of a loss.

Insurance is a federal subject in India. It is a subject matter of solicitation. The legislations that deal with insurance business in India are Insurance Act, 1938 and Insurance Regulatory & Development Authority Act (IRDA), 1999. Insurance is defined as is a form of risk management primarily used to hedge against unforeseen risks of contingent losses. Another approach to Insurance is as the equitable transfer of risks, or the possibility of occurrence of losses, from one entity to another, by the method of diversification in exchange for a premium. An Insurer is a company designing, promoting and selling insurance products and services amongst the public. An insured or policyholder is the person or entity purchasing these products and services.

Risk management is an activity which integrates recognition of risk, risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources. Some traditional risk managements are focused on risks stemming from physical or legal causes (e.g. natural disasters or fires, accidents, death). Financial risk management, on the other hand, focuses on risks that can be managed using traded financial instruments. Objective of risk management is