Theory and Practice of Insurance

Insurance is a concept, a technique, and an economic institution. It is a major tool of risk management, and plays an important role in the economic, social, and political life of all countries. Economic growth throughout the world has even expanded the role of insurance. Theory and Practice of Insurance aims to describe the significance of insurance institutions, the reasons they exist and how they function. The author emphasizes fundamental principles in risk and insurance, using an international frame of reference. This volume begins with an introduction to the concept of risk, then proceeds to cover insurance and its relationship to the economy; the principles of risk management and insurance; and the characteristics and performance of insurance companies.

1. The Meaning of Risk. - I Insurance in the Economy. - 2. Insurance and Economic Development. - 3. Insurance in the World Economy Today. - II The Principles of Risk Management. - 4. Risk Management Concepts. - 5. Risk Analysis Fundamentals. - 6. Risk Financing Decisions. - III The Principles of Insurance. - 7. Risk Aversion and Insurance. - 8. Insurance Concepts. - 9. Pricing Insurance Contracts. - 10. Retention, Self-Insurance and Captive Insurance Companies. - IV The Characteristics of Insurance Operations. - 11. Organization of Insurance Markets. - 12. Operations of Insurance Companies. - 13. Reserves and Investments. - 14. Reinsurance. - V The Performance of Insurance Companies. - 15. Financial Reporting and Performance. - 16. Supervision of Insurance Operations. - About the Author.