When a company buys insurance risk management is good reason to buy it. By doing this companies can limit potential damages that are infrastructure based or economic. They are generally identified internally or externally by the company.

By doing risk and insurance research firms can asses and mitigate certain risks associated with their continued functions. By attempting to keep these risks at a low level companies can reduce the events that they need covered. Firms who offer risk insurance services will be able to keep track of the events that do have a chance of happening.

By using a risk insurance company risk and insurance becomes easier to deal with. When companies identify the threats and likelihood of said threats occurring they can identify their assets and determine what is most critical to their continued operations. By assessing the risk and insurance aspect of your company you can see how likely an event is. By determining that the risk is less likely to happen, the less expensive the risk and insurance policy will be.

Seventy five percent of risk and insurance losses came from just two sources in a nineteen year period between 1990 and 2009, hurricanes and tropical storms and tornadoes. When taking inflation into account these natural disasters cost a total of 250.2 billion dollars. Over the same nineteen year period risk and insurance companies spent 87.1 billion dollars on other natural catastrophes such as, winter storms, earthquakes, terrorism, floods and fires according to ISOs Property Claims Insurance.

Occasionally unexpected numbers come up with risk and insurance. For example, people considering risk insurance might think that the highest amounts of money spent on forest fires occur in California or Texas, or states surrounding the two. This is not the case. Alaska is the state leading in money spent on repairing damages from wild fires. In 2009 Alaska led the nation with 2,591,597 acres burned by 527 wildfires.