Loss is not a disaster for insurers

GREETING INSURANCE ,
Welcome to the bloggers on this blog . The discussion this time is the last discussion of the properties that a potential loss ( loss that may occur ) can be insured in accordance with the basic principles of insurance . This is the fifth trait of the basic principles that disadvantage is not a disaster for insurers or loss is not to say catastrophic.

    
A single incident can lead to financial disaster for the party , both from the insured object or sourced from outside , seen as a potential loss that can not be insured . Such losses are not feasible insured because insurance companies can not promising the payment of compensation in a responsible manner .
To avoid losses catastrophic and to ensure that losses occur , individually , insurance companies can spread the risk to be guaranteed , ie , by issuing a policy covering a wide area . For example , if property insurance companies issuing policies that protect all houses within a 50 mile radius of an active volcano is not wise , because the volcanic eruption may lead to more claims of the insurer 's ability .
In contrast , property insurance company will also issue policies that protect homes located in areas free of threats volcano . In order to avoid the death of one person causing a fatal loss for the insurer , allowed life insurance companies refuse insurance to the amount of insurance money that is not fair .
Alternatively , the insurance company can hit the fatal probably losses by transferring the risk to another insurance company that in a sense , the other insurance company accepts responsibility to pay for all or part of the claim , in accordance with the portion of premium received .
Shifting the potential loss , in this case , the insurance company ( insurer both ) and it is called reinsurance company receives named reinsurers . Through reinsurance , any opportunities that may result in catastrophic losses by insurance companies can be reduced and even eliminated .
See you again in another discussion that would still be dealing with insurance in the websites of our beloved " CLOSER TO INSURANCE "
GREETING INSURANCE
NATURE OF INSURANCE

    1. Losses must contain uncertainty .
    2. Losses should be limited .
    3. Loss must be significant ( mean ) .
    4. The ratio of the loss must be predictable .
    5. Loss is not a disaster for the party .