Cost Of Risk (cor)
Quantitative measurement of the total costs (losses, risk control costs, risk financing costs, and administration costs) associated with the risk management function, as compared to a business's sales, assets, and number of employees. The purpose of such a comparison is to determine whether the total costs of the risk management function are increasing, decreasing, or remaining constant as a function of the business's economic activity. After the quantitative measurement has been derived, a comparison can be made between the COR of that business and the CORs of its peer groups. In addition, COR will allow the business to focus on the areas of operation that will have the greatest long-term effects on its total risk management function costs.
Popular Insurance Terms
Element used to adjust losses to reflect the incurred but not reported claim (IBNR) under the retrospective method of rating. ...
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Insurance company incorporated according to the laws of the state in which a risk is located and the policy issued. The insurance company is domiciled in that state. ...
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Type of pension in which benefits may vary depending on the investment performance of the pension plan assets. Contributions are made to fund a target benefit, such as 35% of compensation, ...
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