2. Methods of Handling Risk
Avoidance
One of the methods of dealing with risk is avoidance, which means eliminating exposure to a loss. For example, if a person wanted to avoid the risk of being killed in an airplane crash, he/she might choose never to fly in an airplane. Risk avoidance is effective, but seldom practical.
Retention
Risk retention is the planned assumption of risk by an insured through the use of deductibles, co-payments, or self-insurance. It is also known as self-insurance when the insured accepts the responsibility for the loss before the insurance company pays. The purpose of retention is
- To reduce expenses and improve cash flow;
- To increase control of claim reserving and claims settlements; and
- To fund for losses that cannot be insured.
2.处理风险的方法
避免—处理风险的方法之一是避免，这意味着消除损失风险。例如，如果一个人想要避免在飞机失事中被杀的风险，他/她可能会选择永远不会乘坐飞机。避免风险是有效的，但很少有实际意义。
风险保留—是指被保险人通过使用免赔额，共同支付或自我保险计划的风险假设。当被保险人在保险公司支付之前承担损失责任时，也称为自我保险。风险保留的目的是
减少开支，改善现金流;
加强对索赔预留和索赔解决的控制;和
为无法投保的损失提供资金。
Sharing
Sharing is a method of dealing with risk for a group of individual persons or businesses with the same or similar exposure to loss to share the losses that occur within that group. A reciprocal insurance exchange is a formal risk-sharing arrangement.
Reduction
Since we usually cannot avoid risk entirely, we often attempt to lessen the possibility or severity of a loss. Reduction would include actions such as installing smoke detectors in our homes, having an annual physical to detect health problems early, or perhaps making a change in our lifestyles.
共享是一种处理具有相同或类似损失风险的一组个人或企业的风险的方法，以分担该组内发生的损失。互惠保险交易是一种正式的风险分担安排。
减少—由于我们通常无法完全避免风险，因此我们经常尝试减少损失的可能性或严重性。减少将包括诸如在我们家中安装烟雾探测器，每年进行体检以及及早发现健康问题，或者可能改变我们的生活方式等行动。