Risk management involves loss prevention and safety programmers. Insurers manage the risk in a very effective manner so that policyholders may not suffer on account of a higher premium. Reinsurance is practiced to avoid the loss. Let’s know the basic info about IFRIMA and FERMA.
There is great pressure on reinsurance companies as natural disasters are increasing. Catastrophe management is resorted to in which insurance companies are financially helping for effective management of risks.
Risk management depends on good corporate governance. The insurance company increases its image through corporate governance. IFRIMA is a motivating education of risk management. Insurers will have to manage hazards, operational risk, and financial risk, and so on.
Federation of European Risk Management Association in Europe (FERMA)
Every day people are coping with new types of risk. They have to manage the through insurance and insurers manage them through reinsurance. Insurance is needed for all those risks which could not actuarially be calculated by the insurers who have put them under exclusions.
For example, storms were excluded previously, but now they need to be insured. Many insurers have started insuring those risks which were uninsurable. The resort risk management through risk transfers and risk financing.
FERMA having 14 members is looking into risk management issues. Many new companies are looking for FERMA to help them. They have to comply with the regulations of solvency, directives of intermediation, and environmental issues. FERMA is providing education and training in risk management as well as global insurance learning.
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