Risk Management in General Insurance Business in India with Special Reference to Insurer

General insurance businesses in India are exposed to a host of financial and non-financial risks. The financial risks include capital risk, asset liability management risk, insurance risk and credit risks whereas non financial risks include enterprise risk and operating risk. These risks, unless managed effectively, are bound to affect the overall performance of the business and even threaten its survival. General insurance businesses in India are found to be managing their exposure to financial and non financial risks by employing two broad techniques, risk based capital management and reserving, with the former consisting of management role, capital and solvency margins, and risk based capital and the later consisting of unearned premium reserves, unexpired risk reserves, outstanding claim reserves, incurred but not reported reserves, catastrophe reserves and claims equalization reserve.