Risk Perception Case Study

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Risk Perception: The Challenge of Insuring Emerging Risks
“Developing our ability to anticipate tomorrow's risks is a key issue.”
“Tomorrow`s risks” also known as emerging risks – or as Rumsfeld says “known unknowns” or conceivably even “unknown unknowns” - are new risks that are difficult to quantify with possibly considerable consequences. The questions that immediately arises is whether they represent an opportunity for improved living standards in the future or a threat with serious implications? The resolution, however, is dependent on the way people perceive the benefits or hazards coming along with the development of emerging risks which are manifold and are becoming increasingly prevalent in various industries. They derive from …show more content…

These often derive from the cultural environment and are influenced by peer groups, a factor also known as group think. Consequently, ideology conveys norms and values that influence the personal risk perception. These demographic differences show the need to assess risk differently in various countries and to adapt to social differences as especially people living below the poverty line are exposed to various risk sources. Generally, people are particularly concerned about hazards with possibly “health-related or environmental impact” . From an environmental viewpoint, preventions and programmes should be especially offered in location where people are exposed to natural catastrophic. As this often concerns people living in poor domains, the development of an environmental insurance with especially low premiums like a microinsurance is worth considering. Financing research and further prevention programmes are relevant concerning health …show more content…

Both, personal as well as general risk, are certainly important. However, insurance methods may be slightly different. The identification of not only the geographical range but also the attention to a long-time horizon is crucial. As especially public risk may threaten the insurance`s existence, it is necessary to determine the exposure of all possible development paths and not only the most logical one and to create a public risk awareness. Concerning private risk, the adaptation to individual characteristics and the establishment of data privacy are a critical part of insurance as, due to cyber risk, the second part is becoming more and more

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