It is undeniable that everyone who lives in the world will be faced with various kinds of risks. These risks take multiple forms, and some can be transferred through insurance, which is known as an insurance risk. Come on, check out this article to learn more about hazards in insurance and how to manage them!
Understanding risk and its management
Before discussing insurance risk, first the meaning of risk; let's go! So, the risk is all things and possibilities that can happen and harm life, both personally and in many people.
Personal risks include accidents that cause illness or disability, death, to financial problems such as bankruptcy. Meanwhile, the chances that could impact many people could occur in the form of natural disasters, building fires, to policies in the economic field, such as inflation or mass layoffs.
That doesn't mean the losses caused by a risk can't be managed. There are four ways that you can do in managing risk, namely:
Avoiding
One way that can be done in risk management is to avoid the risk. For example, you want to minimize the possibility of being hit by floods, so you can choose to live in settlements that are in the highlands. However, this method tends to be challenging to achieve because other alternatives usually have risks that are no less impactful.
Controlling
The following way is to control the risks that may occur. For example, because you live in an area prone to flooding, you can store valuable items and documents on pretty high shelves. This is so that you can still save valuable items and documents in the event of a flood.
Delaying
Risk management that you can also do is to postpone the risk. An example is a vehicle you have that needs physical repair, but you still have to pay for your child's education costs. Therefore, you can delay repairing the car so that many expenses are not incurred.
Divert
Finally, the way that can be done in managing risk is to transfer it. A clear example of moving risk can be seen in how insurance works. So, you know that you have a chance of diabetes that is passed on from your family. Therefore, you transfer the risk by paying a certain amount of funds in a premium to the insurance company.
So, the insurance company will issue rules in the form of a policy regarding what risks can be insured. The company will approve the transfer of risk that you submit, as long as you pay a premium to the company every month. You can transfer various types of risk through insurance products, such as health insurance and life insurance.
What is insurance risk?
After knowing what risk is in general, then, what is insurance risk?
So, the insurance risk is any risk that may occur as long as a person or business is registered in an insurance product, to be later covered or given protection by the insurance product. Therefore, individuals and companies can feel this insurable risk as long as they are registered in an insurance product..
4 types of insurance risk
So, what are the risks of insurance? The following is a complete explanation, namely:
Pure Risk.
First is pure risk, namely that if it occurs, you can experience a loss, but if it does not happen, there will be no loss or gain whatsoever. In this case, the pure risk is felt in many forms that cannot be avoided, such as accidents, fires, to bankruptcy.
Speculative Risk
The next type of insurance risk is a speculative risk. This type of risk is a risk that has several possibilities if it occurs, namely causing losses, profits, or there is no change at all. A prominent example of this risk is investing in securities such as stocks and bonds, which have no fixed value in the future.
Particular Risk
Risk means a risk whose impact will only be felt directly personally and will not affect the surrounding environment, both quantity and quality. Examples of this type of risk are personal accidents, robbery and theft, or being laid off so that you don't have a job.
Fundamental Risk
Last is an absolute risk, namely the risk that impacts both personally and the surrounding environment and many people. Examples are government policies such as inflation and natural disasters, such as flash floods, volcanic eruptions, and tsunamis..
6 criteria for risk that can be insured
From the insurance company's perspective, companies also have criteria for any risks that can be insured, namely:
Risk must be unpredictable and occur by accident.
Chances must be shared in life and are guaranteed by the insurance
Must be financially replaceable
Some things are determined as objects of insurance, such as illness or loss
Objects of insurance that are selected must be by the public interest, rules, and applicable laws
The level of risk insured affects the adjustment of premium costs that must be paid by insurance participants' financial
Also, watch our YouTube video with Philip Mulyana, a coach with experience in the securities world. Guided by host Faisal A. Rahmat, they will discuss how to get rid of the negative stigma about insurance that has been going on for some people by planting the product to be purchased.
ance that has been going on for some people through planting the product to be purchased.
BNI Life Corner | Ep.6 Philip Mulyana: Cheated by Insurance?
Start Protecting Risk with BNI Life Plan Multi Protection Plus
You can deal with risk is to switching it to a product or insurance? Well, suppose you want to protect yourself and your family from the risk of illness and death. In that case, BNI Life Plan Multi-Protection Plus is the answer! life insurance product unit-linked from BNI Life offers dual benefits, namely death and investment benefits, with premiums starting from Rp. 200,000.00 only.
You can also get additional benefits such as protection from critical illness, accidents, outpatient surgery, and lifelong care. The sum insured can also reach 200x of the basic premium. So what are you waiting for? Protect yourself and your family at risk with the BNI Life Plan Multi-Protection Plus. Also, visit https://www.bni-life.co.id/ for complete information!
