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Risk = Claims + Legal + Reinsurance + Reinvestment - Coggle Diagram
Risk =
Claims + Legal + Reinsurance + Reinvestment
Loss on Claims
Loss due to incorrect risk assessment
More number of claims settled
Claim amount more than estimated
Overall claims payout > Premiums earned
Loss due to operational errors
Fraud Detection Failure
Paying more than actual damage
Settling Fabricated/false claims
Overpayment/Duplicate payments from operational errors
Reinsurance
loss from counterparty default
loss due to residual risk
Reinvestment
credit risk
market risk
liquidity risk
economic risk
political risk
Legal
Litigation costs
Fines/Penalties from non compliance
Legal fees
Loss due to
__
True claims
True by the company, True by the customer
no risk
True by the company, False by the customer
Misinterpretation
Intentional
By mistake
False claims
False by the company, False by the customer
no risk
False by the company, True by the customer
Legal liability