Traditional Culture Encyclopedia - Traditional festivals - What is the meaning of static risk and dynamic risk in insurance?
What is the meaning of static risk and dynamic risk in insurance?
Static risk mainly refers to the risk brought about by natural disasters and accidents,
such as earthquakes, floods and other natural disasters, fires, industrial injuries and other accidents are static risk.
Dynamic risk refers to the risk associated with social change,
mainly the risk arising from changes in socio-economic, political, and technological, organizational institutions, such as inflation, exchange rate changes and so on.
Static risk has a limited impact, often affecting only part of the property or individual, while dynamic risk has a larger impact, even society as a whole.
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