What are the two types of loss control in insurance


As an insurance company, you have to control losses to survive. Fortunately, there are two ways in which this can happen. The first is losing control and the second is loss prevention.

loss prevention

Loss prevention, or loss control for short, is the use of techniques that reduce the likelihood that an accident or injury will occur. Loss prevention techniques can be used to reduce the likelihood of accidents and injuries occurring as well as damage.

Loss control methods include:

  • Safety training for employees;

  • Training in proper procedures for handling dangerous materials;

  • Installation of safety features and equipment (e.g., fire extinguishers).

Loss control

Loss control is the process of identifying, evaluating, and reducing the risk of loss. Loss control can be applied to both property and casualty insurance carriers.

Loss Control involves three key steps:

  • Identifying the root cause of losses (what is causing them?)

  • Evaluating how much money each cause costs you in total, when it's calculated on an ongoing basis

  • Creating plans to eliminate or reduce those specific causes so that your company doesn't have to pay out as much money

Controlling losses can help insurance companies save money and provide better insurance policies.

Loss control is the process of reducing the frequency and severity of losses. In practice, loss control can include taking steps to reduce risks, such as installing more security cameras in a store or moving valuables to a safer place. When loss prevention efforts succeed in preventing a loss from occurring, that's called "claim prevention."

When you're talking about insurance policies for individuals or businesses, it's important for insurers to be able to accurately predict how much money they'll need to pay out over time. Since some people will experience more accidents than others (depending on where they live), insurers try to figure out what kinds of policies would offer customers reasonable coverage without making them pay too much money. The goal is not just profitability but also fairness: if an insurer charges too much for their services while offering low-quality coverage, then most people will avoid buying their policies and stick with other options instead—and no one wants that!


Insurance companies control losses by providing policies with only the benefits that policyholders need. They also offer lower premiums and deductible amounts to encourage good behavior from policyholders. This way, insurance companies can reduce their own costs while keeping customers happy at the same time.

Post a Comment