Noninsurance Risk

(redirected from Non-Insurance Risk)

Noninsurance Risk

The risk of loss from not having an insurance policy. For example, if one does not purchase health insurance, one carries the noninsurance risk that an injury will leave one unable to pay one's medical bills.
References in periodicals archive ?
While other non-insurance risk management techniques are available, each business must face the present and future challenges posed by the information age and make the best decision possible to manage the exposures that accompany this new type of crime.
In an effort to lower non-insurance risk, the company has reduced its strategic allocation to equities.
These techniques range from traditional insurance products (e.g., property-liability insurance, life health insurance, pensions and employee benefits) to current advances in corporate and insurer risk management (e.g., risk financing and retention, non-insurance risk transfer, catastrophe derivatives)." To satisfy the four-course concentration, the Web site says that students choose tour of the following: Financial Strategies & Analysis: Insurance; Employee Benefit Plan Design and Financing; Business Insurance & Estate Planning; Property and Liability Insurance Company Management & Policy; Risk Management and Treatment; Economics and Financing of Health Care.
Non-Insurance Risk Transfer includes techniques used in the negotiation of contracts that are designed to prevent the organization from having to assume the liability of other parties to a contract.
These exposures, as well as the property, liability, and auto exposures, can be covered to a degree by the domestic policies, but a close review of the insured's operations and its off-premises exposures will no doubt identify areas that require attention and further protection, whether through insurance or some non-insurance risk management technique.
This would sharpen the dividing line between captive insurance, which is often incongruously described as a form of self insurance, and non-insurance risk financing options.
Principle 4 underlying the ICS refers to "all material risks of IAIGs' portfolios of activities taking into account assets, liabilities, non-insurance risks and off-balance sheet activities." But what is the definition of "material"?
The survey of more than 1,000 risk managers, C-suite executives and other corporate officers involved in "risk-related functions" found 54% want their risk managers to provide better quantification and analysis on risk management, to "develop a greater understanding of non-insurance risks" and, perhaps most importantly, to become more involved in the company's strategic planning.
However, in exchange, investors generally require the sponsor to maintain the risk of ongoing administration, certain other non-insurance risks such as lawsuits targeting inappropriate sales, large policies and asset-management responsibilities.
Full browser ?