Microinsurance
Insurance in Emerging Economies
Long before our modern insurance industry was formed, society used fundamental concepts of risk pooling and risk spreading to harness economic activity for the good of society. More than 3000 years ago, merchants understood that by splitting their goods across several caravans, their loss exposure per event declined substantially, and when loss did occur, it was borne by a group of merchants rather than any single trader. They could predict, bear, and plan for losses far more easily. Babylonians developed an even more elaborate system whereby merchants would pay lenders an additional fee to guarantee cancelation of the loans when shipments were stolen. Throughout the ages, societies have used collective contributions to support individuals who experienced loss.
Enterprise Risk Management
2012 Global ERM Survey: Keep Your Eye on the Prize
Insurers have a clear vision of how enterprise risk management (ERM) will add value to their organizations but face business challenges in progressing toward that goal, according to Towers Watson's Seventh Biennial Global ERM Survey, released in November.
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