Risk Management
What are the 4 steps in the risk management process?
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Identify Loss Exposure
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Measure and Analyze
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Select Appropriate Techniques
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Implement and Monitor
What is the formula for the combined ratio?
Incurred Losses + Expenses
Earned Premium
<100% = Insurance company is making a profit
>100% = Insurance company is at an operational loss in terms of underwriting but possibly making up for the loss with investment income