Question

1. Differentiate the principal job responsibilities between an insurance manager and a risk manager.

Answer 1

Insurance manager's duty is to supervise the operations within an insurance practice. They manages the investigator, adjuster & appraiser. The insurance claims are processed in a timely manner, they are responsible to solve the issues or risk arise during these process, however , is not risk management. Risk managers are works with the organizations to assess & identify the risks which may cause damage for the company reputation, security, safety & financial status. They also guarantees that the company creates develops the effective plans in order to prevent or reduce the impact if some loss occurs. One of the feature which differentiates between insurance manager & the risk manager is the type of risk that each addresses. Because the risk management is evolved from insurance management, they are more concerned about insurable risk. The main focus of the risk manger is on insurable risk, more specific domain of risk management is pure risk. The risk management can not ignore those pure risk which are not insurable. So the risk management is more broader than the insurance management, which deals with both insurable risks as well as un-insurable risks. Risk management & insurance management also differ in their philosophy. Insurance management involves the techniques other than insurance but these techniques are primarily viewed as the alternative to insurance. In risk management the insurance is considered as one of the several approaches which deals with the pure risk which company faces.