Risk Behaviors | risk behaviors definition | risk behaviors examples

Risk Behaviors;

risk-behaviors

                           All people are subject to the possibility of occurrence risks that affect their assets or their own integrity. However, it does not mean that they are all aware of the existence of these risks in daily life.

                               When the individual knows of the risks that he runs and wants to protect yourself from them, there are two basic attitudes:

                that of doing nothing, trusting that the risk does not affect him, or that of adopting some type of measures to protect yourself from it.

             The individual can face the risks to which his person, his property, or his patrimony is exposed, in three different ways:

·       Prevention

·        Savings

·       Insurance

Prevention is the set of measures that are adopted to eliminate as much as possible the possibility of the occurrence of the event exposed to risk or, failing that, to mitigate the consequences in case occur (use of suitable materials in construction, adequate facilities for fire fighting, preventive medicine, etc.).

                       Saving is also a way of dealing with risks, such as foresight against future contingencies. Pursues the constitution of capital by periodically subtracting amounts that are not intended for consumption. However, the premature occurrence of the event exposed to risk limits the effects of the forecast thus achieved to the total of the amounts saved up to that point.

Faced with these systems, insurance offers the resolution of the problem immediately and completely, since the only payment of the premium is enough for the individual is protected from the consequences of the occurrence of Sinister.

        Insurance, therefore, implies a transfer of risk from the person who is exposed to it to a collective entity -insurance entity- that assumes the same, so that the consequences of risk cease to fall on the person in question and are satisfied by the new "entity", which has previously collected among all the subjects exposed to it the necessary fees or premiums.

                     

        CONDITIONS THAT A RISK MUST MEET INSURABLE;

                              Theoretically, all risks would be insurable. However, there are technical reasons that prevent the application of this abstract principle.   

 

We can highlight the following conditions for a risk to be insurable:

 

Existence of risk ; 

  

existence-of-risk

               

                                  The event to be insured must not have occurred before the insurance, being precisely the existence of risk the essential requirement for the validity of the insurance contract.  

                 Known therefore by the insurance the disappearance of all possibility of damage to the insured item, the insurance contract has no validity insurance, and the same occurs when the insured has certain news of having the incident occurred. In this sense, the Insurance Contract establishes that "the insurance a contract shall be null ... if at the time of its conclusion the risk did not exist or there was the incident occurred ".

 

 Damage must occur by chance ;   

                                                            The occurrence of the risk must be independent of the will human, or at least the will of the insured is possible to ensure events that depend on the will of another (such as for example, the Stole).

The damage must be defined;

                                                      The insurance contract does not insurance "any" risk, but this must be defined and delimited, including the scope of the insurance, its exclusions, the amount, and the period during which the risk is covered by insurance.

The probability of occurrence and the intensity of the damage must be predictable;

                                                     The risk must be study able in accordance with the laws statistics, so that the probability of occurrence and the probable mean intensity, in order to make possible the determination of the premium that each insured must contribute.

            For this reason, from a technical point of view, the risk is insurable yes:                     

                                                    ➤ The probability of occurrence of the loss is known.  

➤  There is a mass of policyholders who experience the need for insurance that protects them from a certain class of risk.

This last requirement is essential for compliance with the "Law of the big numbers. "

 

Simultaneous occurrence on all objects must not be possible;

              The different insured must be exposed to risk in similar conditions, but there should be no possibility of it occurring in all the claims simultaneously or, at least, that it does not occur in all with the same consequences or intensity.

 

          It must be capable of causing damage valued in money;

                 The insurer must be able to measure the damage in monetary terms, either by the market value of the insured objects, by the subjective value assigned by the insured on his own life or, in the insurance in which he ensures the provision of a service, it must be quantifiable in terms of cost.

           The claim must not serve as profit or enrichment;

                          The insurance should be limited to repairing the damage caused by the occurrence of the risk or to pay a substitute monetary compensation for said repair. However, there are types of insurance in which This general indemnification the principle does not govern, but the sums insured obey a subjective determination previously made.