Please enable JavaScript.
Coggle requires JavaScript to display documents.
Risk = Claims + Legal + Reinsurance + Reinvestment - Coggle Diagram
Risk =
Claims + Legal + Reinsurance + Reinvestment
Claims (payouts)
(
Reimbursement provided for covered loss
)
(Unforeseen) True claims
Regulatory compliance changes
ACA resulting in unanticipated higher coverage
Catastrophic events
Number of claims increases
Avg cost per claim increases
Economic factors
Underwriting risks
Incorrect assessment of risk of policyholder
Selecting high risk applicants, imbalance in risk pool
Inaccurate actuarial models
False claims
Intentionally Misrepresented information
Fictitious events
event that has not happened, or staged/faked
Multiple claims
multiple claims for same loss, across various policies or companies
Claiming more than actual
Over-claiming
Unintentionally Misrepresented Information
Misrepresented by human error
Legal
Insolvency Risk
Legal Penalties from inaccurate and late filings
Low IBNR Reserve
Reinsurance
Significant loss of money due to counterparty default
Residual risk (discrepancies between reinsurance needs and actual coverage from re-insurer)
Monetary loss when amount received from re-insurer does not match the losses incurred