Did you know that the practice of insurance risk management dates back to practices by the Chinese and Babylonian traders in the third and second century BCA? When chinese merchants were traveling across treacherous rivers, they would distribute their wares across many ships in order to limit loss. Recorded in the Babylonian code of Hammurabi, a merchant could pay an extra fee for his loan to be cancelled if his sailing shipment were to be stolen. Insurance became more complex after the European Renaissance.
Today, insurance often deals with risk. A risk insurance company will insure everything from houses, to cars, to events. If you are considering making use of risk insurance services, keep some things in mind. Many insurance contracts are tricky and will skirt around telling you what it is they are not insuring. Many people who have been affected by natural disasters like tornadoes or flooding have called in to their insurance only to discover that there was an exception in the contract for that specific type of natural issue. Some reforms have been made to eliminate risk and insurance loopholes like this, but it still modes well to ask an insurance risk management professional if the contract looks acceptable.
It is also important to do insurance research because there are a lot of different options available, and competing risk insurance services all want your business.
People who compute the numbers of insurance risk management are usually actuaries. Actuaries are business professionals who calculate exactly what the financial impact of risk is, and what level of uncertainty the insurance company is dealing with. They evaluate the likely probability of certain events based on algorithms as well as local and national statistics on risk.
For people interested in working with insurance risk management, it is possible to become a certified risk manager. To do so, a professional must take five practical course that deal with identification, analysis, control, finance, and administration.