So, with all the talks about Uttarakhand disaster and LIC paying a record amount of money to the policy holders, insurance business has come into limelight like never before. And combine that with the talks of LIC holding stakes in some of the largest oil companies and others such companies, the...
So, as in the previous articles, when the smart guy in the burnt house example charged everyone Rs 110 and one house did burn, he still made a profit of Rs. 1000/-. And this is what all of us think how profits are made by insurance.
As with any other business, the business of insurance has its own risks and if not planned and taken into account, those risks have potential to actually wipe off the whole company! Such is the business of Insurance and that s why risk management is the most important part of Insurance.