(2)Risk financing Risk assumption Self-insurance and financed risk retention Risk transfer other than insurance Insurance V Step Three: regular review of the risk management program
(2) Risk financing ▪ Risk assumption ▪ Self-insurance and financed risk retention ▪ Risk transfer other than insurance ▪ Insurance V. Step Three: regular review of the risk management program
VI Financial Risk Management Interest rate risk(swap) Credit risk(investigation Currency risk(option, futures, forward) Liquidity risk (allowance) Market risk(hedging)
VI. Financial Risk Management ▪ Interest rate risk (swap) ▪ Credit risk (investigation) ▪ Currency risk (option, futures, forward) ▪ Liquidity risk (allowance) ▪ Market risk (hedging)
4. Private Insurance Companies I. Two different types of insurance companies. Mutual insurance company Stock insurance company 1. Mutual insurance companies: non-profit The owners are the policyholders insured by the corporation Advance premium mutual Assessment mutual Factory mutual
4. Private Insurance Companies I. Two different types of insurance companies: Mutual insurance company Stock insurance company 1. Mutual insurance companies: non-profit The owners are the policyholders insured by the corporation ▪ Advance premium mutual ▪ Assessment mutual ▪ Factory mutual
2. Stock insurance companies 3. Demutualization: The conversion from mutual to stock insurance companies
2. Stock insurance companies 3. Demutualization: The conversion from mutual to stock insurance companies
IT I. Lloyd's of London: one of the most important insurance markets Established in 1688 In 1969 foreigners were allowed to become names of lloyd. In 1990s Lloyd's membership was 18,000 individuals organized in about 170 syndicates. An individual needed a net worth of at least 250 thousand pounds, with at least 150 thousand pounds in liquid assets, to become a name III, Blue cross and blue shield hmos and PPOS
II. Lloyd’s of London: one of the most important insurance markets ▪ Established in 1688. ▪ In 1969 foreigners were allowed to become names of Lloyd. ▪ In 1990s Lloyd’s membership was 18,000 individuals organized in about 170 syndicates. ▪ An individual needed a net worth of at least 250 thousand pounds, with at least 150 thousand pounds in liquid assets, to become a name. III. Blue cross and Blue shield, HMOs and PPOs