Insurance Regulatory and Development

insurance does not protect the asset. it does not prevent its loss due to the

peril. the peril cannot be avoided through insurace. the risk can

sometimes be avoided, through better safety and damage control measures.

insurace only tries to reduce the impact of the risk on the owner of the

asset and those who depend on that asset. they are the ones who benefit

from the asset and therefore, would lose, when the asset is damaged

insurance only compensates for the losses and thet too, not fully.

only economic consequences can be insured. if the loss is not financiai,

insurance may not be possible. examplesof ono economic losses are

love and affection of parents, leadershop of managers, sentimental

attachments to family heirooms, innovative and creative abilities,etc.