by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is a Captive Insurance Company?A Captive Insurance Company is a subsidiary company formed and owned by a company for managing the financial risks of the parent company. A Captive Insurance company insures the risks of its owner. It is a vehicle for self-insurance...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
Back To: INSURANCE & RISK MANAGEMENT What is Cession?Cession (or to cede) applies to an insurance provider and the insurance company’s insurer (re-insurer). Cession places part of certain losses on the re-insurer. An insurance risk can be transferred to the...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is a Captive Agent?A licensed insurance agent who works for one single insurance company exclusively, is known as a captive agent. A captive agent represents one single insurance company and sells only the products offered by that company. A captive agent may be...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is Coinsurance? This is the amount that is paid by an insured against a claim after the deductible is settled. It is usually expressed as a fixed percentage. The coinsurance provision is the same as a co-payment provision in health insurance. The only difference...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is an Actuary?An actuary is a person conversant in the profession of mitigating and managing the risks associated with financial investments and other ventures that are potentially risky. Actuaries have excellent knowledge and skills in mathematics, statistics...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is insurance?Insurance is a risk management and mitigation relationship between an insurer and the insured party. The primary participants and characteristics of the relationship are as follows:Insured – The insured allocates the contingent risk of loss in...
