by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is Objective Probability?Objective probability refers to the probability that analyzes if an event will take place. In this analysis, every measure revolves around an observation that has already been recorded or is based on historical data. As compared to...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is the Jarrow Turnbull Model?The Jarrow Turnbull Model was created by Robert Jarrow and Stuart Turnbull as a credit risk model that incorporates the tendency of default with interest rates in credits. This credit risk model estimates the probability of defaults...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is All-Risks Coverage?An All Risks Clause is a provision in an insurance policy that typically entertains (i.e. provides compensation for) all possible claims except the ones that have been specifically excluded in the insurance contract. An insurance policy that...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is an Absolute Beneficiary?An absolute beneficiary is a beneficiary of a life insurance policy or safeguard-fund, whose beneficiary status cannot be revoked without their written consent. It depends on the terms of the policy whether the beneficiary is absolute...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is an Absolute Exclusion in Insurance?Absolute Exclusion is a clause that can be found within certain insurance policies. The clause eliminates coverage of certain events under the policy. This clause allows the insurer to deny any claim that is remotely related...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is a Combined Ratio?The combined ratio is a simplified measure used by an insurance company to evaluate its profitability as well as financial health as a way of measuring its day-to-day performance. The combined ratio is calculated by dividing the sum of...
