Risk Management and Insurance in Aboriginal Communities

📖 The Scoop

The cost of insurance is often three times higher in Aboriginal communities than in comparable non-Aboriginal communities. Previous research has shown that less than half of this extra cost can be justified because of the extra risks involved. This report describes two examples of Aboriginal communities who reduced the costs of their insurance through applying a risk management approach and competitive tendering. The 14 Inuit communities of the Kativik Regional Government in Nunavik achieved a decrease of 50% in cost, followed by a further reduction of 20% two years later. The scope of the coverage wa♯s improved with the same broker and insurance company as before. The Naskapi Band of Quebec took the same approach. It saved some 70% on the cost of insurance, while improving the quality of its coverage. Here the broker and insurance company changed. Risk management is a continuous and systematic series of activities with three distinct goals: to minimize the likelihood of accidents, to limit their severity, and to ensure that the pre-accident situation can be restored.

Genre: Business & Economics / Insurance / Property (fancy, right?)