Insurance losses and risks, understanding and classification

Insurance of losses is insurance provided by insurance companies to policyholders (both groups / companies and individuals) which aims to guarantee the losses caused by loss factors. The loss factor can be derived from a natural disaster, fire, theft, insurance sparks, etc..

In the division of insurance in the previous article "Social security, free from the government?", we consider the more general insurance toward voluntary insurance. This does not mean that social security should not we understand, but instead of social security is closely related to the so-called insurance. In line with this that, the development of economic structures in various parts of the world these days leaves a deep pain to the workers or employees who are not all of them receive social security or insurance.

 

At the beginning of this article has discussed that, given the loss of insurance in the event of a loss caused by certain factors. Of course, such losses may arise in the future then be the responsibility of the insurance company. So the risk or loss that may arise is no longer a burden on the policyholder's insurance company but a burden. Now where lies the risk and the possible risks and losses we suffered in the days to come within the scope of insurance.

Risk. Risk is a danger, a result or consequence that may occur due to an ongoing process or event to come. In insurance, risk can be defined as a situation of uncertainty, in which case an undesirable situation can cause a loss (Wikipedia.org).

In line with the opinion of Mr. Abbas Salim, he wrote in his book about understanding risk. Risk is uncertainty or uncertainty that may give rise to a loss (loss). Then he adds the elements of uncertainty in the form:   

Economic uncertainty. Ie events that arise as a result of changing consumer attitudes, for example changes in consumer tastes or interests, or a change in price, technology, or gets a new discovery, etc..

Uncertainties caused by nature. Such as fires, hurricanes, typhoons, floods and others.  

Uncertainty caused by human behavior. Such as wars, theft, robbery, and murder.

The third type of uncertainty at the top, which can be insured is the natural and human uncertainty. While the former can not be insured because it is speculative because of the economic elements that are fluctuating and difficult to measure its severity. He also added regarding the classification of risk in order to differentiate the levels of insurance in terms of risks.

Speculative risks, ie risks that could bring in speculative losses or profits. Example: The merchant will sell a profit and loss.

Pure risks, ie risks that are always causing harm. Example: An insurance company operating in the field of pure risks such as death, fire and accident).

Many methods have been sought by many people to make a decent life. As we know that, any way we choose to have each of the risks we face. The only solution to solve the problem early is "Facing the problem itself". Therefore, do not you think that how to avoid the risk? But think how do I manage all the risks involved?