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Essay / Research Paper Abstract
This 14 page paper discusses the statement "As an organisation we pay a lot of money on insurance. There is therefore no need for us to invest time and resources in other methods of loss management." The paper discusses this looking at what losses insurance can cover, alternatives to insurance, the need for a cost benefit analysis, responsibility and the influence of asymmetrical information and moral hazard. The bibliography cites 10 sources.
Page Count:
14 pages (~225 words per page)
File: TS14_TEriskinsure.rtf
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Unformatted sample text from the term paper:
needs to undertake loss management strategies even where there are insurance policies in place. There are many potential areas of losses in a business which ensures cannot cover, for example
market conditions, events where the loss could not be quantified in financial terms and situations where the losses incurred may be difficult to prove or under the total control of
the company. There are also circumstances where insurance may not be the best method of loss management, costing more than a company accepting the risk and the potential loss.
Even where a loss is insured the company still needs to undertake loss management to minimise losses. This is usually a condition of many
insurance contracts, it may also be argued as morally and ethically required as being in the interests of all concerned. Loss management also needs to take into consideration aspects such
as asymmetric information a moral hazard, and the way that they, or their employees will behave with a high level of insurance. Therefore, it is possible for a company to
be over insured and whatever the insurance position the company should still undertake active loss management. Text In any business there
will always be some type of risk. Insurance has been a tool used by individuals and companies for many years as a way of mitigating or reducing the impact of
risk. It does not stop any events occurring, but provides financial compensation if and when an insured risk occurs; helping the company to overcame the event. For example, a company
will insure its building against natural disasters, such as fire and flood, if that event occurs the insurance policy will pay out the amount that the company has lost due
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