Terms
Spread of Risk
Spread of risk is a term used to describe how insurance companies minimize their risks by writing policies for many different policyholders. Spreading risk generally means offering insurance in multiple...
Stacking Insurance
"Stacking insurance" refers to a practice in which an insured individual or business combines or accumulates coverage from multiple insurance policies to increase their total coverage limits or potential benefits....
Risk Sharing
Risk sharing, a fundamental concept in insurance and risk management, refers to the practice of distributing or transferring the financial impact of potential losses among various parties. The definition of...
Moral Hazard
Moral hazard, a crucial concept in the insurance and economic realms, refers to the change in behavior of an individual or entity due to the presence of insurance coverage, leading...
Associate in Risk Management
Associate in Risk Management (ARM) is a professional designation for individuals in the insurance and risk management industry. The definition of Associate in Risk Management refers to a certification program...
Asset Risk
Asset risk, a vital concept in the realm of finance and insurance, refers to the potential for financial loss or unfavorable fluctuations in the value of assets held by an...
Morale Hazard
Morale hazard, a term frequently used in the insurance industry, is closely associated with the behavior and attitude of policyholders towards risk. The definition of morale hazard refers to a...
Organizational Risk
An organizational risk may refer to the potential losses an organization may experience due to an adverse event or activity. The probability of a particular event or activity occurring could...
Loss Triangle
A loss triangle is a way to analyze and predict losses over a given period, typically by tracking the frequency and severity of claims. Loss triangles are used during a...
Hard Market
Like most markets, the insurance market is cyclical, and a hard market is the upswing of this cycle. Insurance premiums often increase, capacity decreases, and coverage terms are restricted. Insurers...
Risk Reduction
Risk reduction refers to identifying and implementing measures to reduce the chances of damage from a particular activity or situation. This can involve identifying potential hazards, implementing safety measures, and...