10 Questions
Which type of risk is related to events insured by the insurer, such as mortality, longevity, and morbidity?
Insurance risk
What type of risk can occur because of internal, industry, regulatory/political, or wider market factors?
Business risk
Which type of risk is related to potential losses due to adverse movements in financial market variables on invested assets and liabilities or on fee income?
Market & credit risk
Which type of risk is related to the risk that the insurer does not have sufficient liquid assets to meet their short-term financial obligations?
Liquidity risk
Which type of risk is integral to the business model for insurance in order to meet obligations to policyholders, other customers, and creditors, but also to manage its capital efficiently?
Insurance risk
Which city saw the rise of insurance companies due to urbanization?
London
What is the underlying principle of insurance?
The law of large numbers
What makes a risk insurable?
The loss must be definite
What is the role of the insured in insurance?
To transfer risk to the insurer
What is the purpose of price differentiation in insurance?
To differentiate between high and low-risk customers
Test your knowledge on risk management for financial institutions and insurance. This quiz covers topics such as risk management frameworks, types of risks, and the importance of managing capital efficiently. Enhance your understanding of insurance risk and its impact on insurers' obligations to policyholders, customers, and creditors.
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