Open AccessINSURANCE AS A PREREQUISITE FOR RISK MANAGEMENT IN WORKING AND LIVING ENVIRONMENT
Author(s) -
Snežana Živković,
Aleksandra Petković
Publication year - 2020
Publication title -
facta universitatis. series: working and living environmental protection/facta universitatis. series: working and living environmental protection
Language(s) - English
Resource type - Journals
eISSN - 2406-0534
pISSN - 0354-804X
DOI - 10.22190/fuwlep2002139z
Subject(s) - business , risk management , actuarial science , business interruption insurance , risk pool , key person insurance , risk analysis (engineering) , casualty insurance , order (exchange) , risk assessment , insurance policy , finance , income protection insurance , general insurance , economics , management
Insurance is an economic and service activity that protects people and their property from the consequences of numerous hazards. Therefore, insurance companies face the risk of financial loss. Improperinsurance premiums caused by an inadequate risk assessment that is assumed in insurance are the most common cause of such losses. In order to minimize the possibility of unwanted losses, it is necessary to carry out adequate business management processes in insurance. In doing so, special attention should be paid to the risk assessment process. A quality risk assessment is of the utmost importance for the functioning of the overall insurance system. Insurance itself can play a significant role in managing the risks in working and living environment whereas the legal regulation gives security to the insurance entities.