Todd and Khalid mention a great point. Many people think that the only risk insurers face is the risk of insureds dying prematurely. NOTHING could be farther from the truth.
Different activities expose insurers to different types of risk. For example, Forthright encounters the risk of lower-than-expected returns when it invests in certain assets.
Or let’s say the company introduces a new product….it faces risks like lower–than-anticipated sales and higher-than-expected claims payments.
Let’s look more closely at the different risks insurers must effectively manage.