Page 20 - M1_Insurance Introduction Notes
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Risk arises therefore out of uncertainty. It can also
represent the possibility of an outcome being different
from the expected.
The events that give rise to such risks are known as
perils.
A peril is an event or circumstance that causes or may
potentially cause a loss. Examples of perils include
fire, flooding, hailstorms, tornado, hurricane, auto
accident or home accident such as falling.
The term risk is used in insurance business is also mean
either a peril to be insured against (e.g. fire is a risk to
which property is exposed) or a person or property
protected by insurance.
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