Insurance 1

2. Risk in which only the possibilities are loss or no loss.
3. Hazard that is dishonesty or character defects that increase frequency/severity of loss.
7. Hazard (morale hazard) that is carelessness or indifference to loss.
8. Risk based on a person’s mental condition or state of mind.
11. Probability based on judgment or gut feeling
12. Risk from high perceived danger — leads to prudent / conservative behaviour.
14. Hazard that is legal or regulatory characteristics that increase losses.

1. Risk in which either profit or loss is possible.
2. The cause of loss (e.g., fire, theft, flood).
4. Probability based on facts and data.
5. Uncertainty concerning the occurrence of a loss.
6. Risk that affects individuals or small groups (not the whole economy).
9. Hazard that is a physical condition that increases the frequency or severity of loss.
10. Risk that is the relative variation of actual loss from expected loss.
13. A condition that creates or increases the frequency or severity of loss.
14. Risk from low perceived danger — leads to risk taking.