Types of risk and Types of

insurance
 T Types of risk

In finance, different types of risk can be classified under two main group s.
• The meaning of systematic and unsystematic risk in finance:
• Systematic risk is uncontrollable by an organization and macro in nature.
• Unsystematic risk is controllable by an organization and micro in nature.
• A. Systematic Risk
• Systematic risk is due to the influence of external factors on an organization.
Such factors are normally uncontrollable from an organization's point of view. It
is a macro in nature as it affects a large number of organizations operating under a
similar stream or same domain. It cannot be planned by the organization.
• The types of systematic risk are depicted and listed below.
 2. Market risk
• 2. Market risk
•
• Market risk is associated with consistent fluctuations seen in the trading price of
any particular
• shares or securities. That is, it arises due to rise or fall in the trading price of listed
shares or securities in the stock market.
• The types of market risk are depicted and listed below.
 7 Types of Insurance
• Life Insurance or Personal Insurance.
• Property Insurance.
• Marine Insurance.
• Fire Insurance.
• Liability Insurance.
• Guarantee Insurance.
• Health Insurance
Life Insurance Takaful offer
• Life Insurance is different from other insurance in the sense that, here, the
subject matter of insurance is the life of a human being.
• The insurer will pay the fixed amount of insurance at the time of death or
at the expiry of a certain period.
• At present, life insurance enjoys maximum scope because life is the most
important property of an individual.
Property Insurance
• Under the property insurance property of person/persons are insured
against a certain specified risk. The risk may be fire or marine perils, theft
of property or goods damage to property at the accident.
Liability Insurance
• The general Insurance also includes liability insurance whereby the
insured is liable to pay the damage of property or to compensate for the
loss of persona; injury or death.
Health Insurance Takaful offer
• Health Insurance covers the cost of hospitalization, visits to doctors
office , and perception medicine.the most usuful policies,provided by
many emloyers,are those that covers 100 percent of the cost of being
hospitalized and 80 percent of the charges for medicine and doctors
services.
Personal Insurance
• The personal insurance includes insurance of human life which may suffer
a loss due to death, accident, and disease
• Therefore, personal insurance is further sub-classified into life insurance,
personal accident insurance, and health insurance.
References: Novi Dewan. Indian Life and Health Insurance Industry: A
Marketing Approach. Springer Science & Business Media. p. 2.
See, e.g., Vaughan, E. J., 1997, Risk Management, New York: Wiley.
Hammurabi (1903). Translated by Sommer, Otto. "Code of Hammurabi, King of
Babylon". Records of the Past. Washington, DC: Records of the Past Exploration
Society. 2 (3): 86. Retrieved 20 June 2021. 238. If a skipper wrecks ... money to
its owner.

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