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What is considered a risk?

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What is considered a risk?

What is considered a risk?

For insurance companies, any possibility of claims going over and above the expected levels is considered a risk. It is the possibility of incurring a loss by insuring a particular group. Insurance companies use this to determine whether they will underwrite the covers provided to the group. The risks do not depend only on the possibilities of the health of that group changing. There are certain groups which take up covers only to provide for individuals with known health problems. This is especially true of very small groups. This is often quite costly. But this may be the only way in which insurance can be secured for those individuals as they are high risk.

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