Risk Management Components in General Insurance and its Combat Measures

Abstract

Companies dealing in general insurance have been undertaking substantial risks and their management have rolled out activities in order for the interest of investor(s) and also put in measures to safeguard their investments. In the present business scenario, there are two vital facets in the general insurance business: (a) the opportunities to tap upon vis-à-vis the targets of players in a quest to achieve business growth, and (b) the continuous process towards assessing the de–tariffing measures. The players in general insurance business have been provided with plenty of market business opportunities to be tapped at the right time. Amidst this, in the times to come, the changing phenomenon is likely to present ample opportunities, which in hindsight would potentially shift the onus of correct pricing on the market players themselves. By the virtue of these factors, the players in the market lay stress (based on risks) on recognizing risk parameters and the associated pricing of products. The market players who succumb, under the cap of immediate response, to these pressure building in a free market scenario, might end up dropping their rates. Therefore, in general insurance segment, it is the structured and efficient risk assessment by the management that would lead the way forward. Due to the entry of new players, their corresponding policy changes in relation to past and present scenarios have to be aligned with the new market scenario.