Please note, this class may be purchased individually or with our 7-part "I Wanna Know Risk and Insurance Concepts" series, here

Insurance, in its role as a risk financing mechanism, combines two concepts – risk transfer and risk sharing. Individuals and entities exchange a potentially large, unknown financial loss for a small known investment (known as a premium) – this is risk transfer. The premiums collected from all insureds are, in a sense, pooled to pay for any losses that occur – this is risk sharing.

Although conceptually simple, the effective and efficient combining of risk transfer and risk sharing within the insurance mechanism requires many moving parts to produce the desired result.

Participants in this webinar will:

• Review when insurance is the proper risk management option
• Understand the true functions of the insurance mechanism
• Analyze the contributions and costs of insurance to society
• Know how to classify a “risk” as insurable or not insurable (and why)
• Combine the “primary” and “necessary” elements required of an “insurable risk”
• Apply the “Law of Large Numbers” to probability theory and insurance