INSURANCE AS A PREREQUISITE FOR RISK MANAGEMENT IN WORKING AND LIVING ENVIRONMENT

Abstract

Insurance is an economic and service activity that protects people and their property from the consequences of numerous hazards. Therefore, insurance companies face the risk of financial loss. Improperinsurance premiums caused by an inadequate risk assessment that is assumed in insurance are the most common cause of such losses. In order to minimize the possibility of unwanted losses, it is necessary to carry out adequate business management processes in insurance. In doing so, special attention should be paid to the risk assessment process. A quality risk assessment is of the utmost importance for the functioning of the overall insurance system. Insurance itself can play a significant role in managing the risks in working and living environment whereas the legal regulation gives security to the insurance entities.