What is the risk of subscription?
The risk of subscribing is the potential for the economic loss that the insurance company could experience if it agrees to provide an individual or organization. It can also refer to a specific set of named hazards or wider cover coverage. The insurance company measures the probability of payment of insurance through the process of determining the risk of subscription. In exchange for premiums, the insurance company takes the risk of economic loss. In order to determine how much bonus the organization should be charged, the insurance company carries out subscription. Insurance is a process by which the insurance company determines the probability and severity of the potential loss - the risk of subscription. A non -writing danger is a somehong that directly causes economic loss. The danger is a situation that exists that increases the likelihood of loss of danger. For example, if an organization tries to insure a building that owns damage, potential danger may include fire, wind and floods. Danger would include whether H is stored in the buildingRigid material, whether the building is located in an area with a high risk of wind damage or floods or whether it is poorly designed.
If the insurance company looks at the risk of subscription, it would explore such factors such as the age of the building and its electrical cabling, the materials of which it is built, its proximity to the fire hydrant and the fire station and whether the building meets certain standards for fire or wind resistance. When these factors are measured, the company can formulate the costs that would have to collect from the organization to be willing to subscribe. This price is called premiums. The risk of subscription is the total amount for which the insurance company corresponds to in the event of loss. If the organization suffers the loss of the insured and the insurance company can compensate the organization, the compensation is called the insurance payment.
The insurance company determines the risk of subscription not only in case of case but also by examining groupsy risks. If the risks are connected together, only a small amount of subscription risks will be loss of insurance companies. If the insurance company performs an effective work in subscription, it will collect more premiums than it will pay off in receivables.