What is the main focus of risk management in insurance?

The main focus of risk management in insurance is to identify, assess, and prioritize risks. This process involves recognizing potential risks that could impact individuals, businesses, or assets and analyzing the severity and likelihood of these risks occurring. After identifying and assessing the risks, the next step is to prioritize them based on their potential impact, which helps in determining the appropriate strategies for managing those risks.

The comprehensive understanding of risks enables insurers and insured parties to create effective mitigation plans and financial strategies to address potential losses. By emphasizing the identification and management of risks, insurance professionals can provide better protection to their clients, ensuring that the right insurance policies are tailored to cover significant exposures. This risk management focus ultimately supports the foundational principles of insurance, which aim to transfer the financial consequences of risks from the insured to the insurer.

Other options like minimizing insurance premiums, selling more insurance policies, or creating marketing strategies do not directly align with the primary intent of risk management itself. Instead, they pertain to business objectives that may follow once risks are appropriately managed and understood.