The Foundation of Insurance: Risk-Based Pricing

To put things simply, insurance companies buy the risk of specified losses from individuals and businesses, then pay if those losses happen. Because no loss has happened at the time of an insurance policy purchase, insurers must prospectively assess the risk and price the insurance product accordingly based on the potential likelihood and magnitude of loss by the policyholder. This session will walk attendees through the processes that insurers use to support this risk-based pricing.