Risk in insurance and a fire insurance application

Insurance companies increase the amount of capital in a country by supplying funds to the economy. Also, they protect the capital that created within the country. An economy cannot grow without this function and losses the capital at the economical risk periods. The word ?risk? evokes the probability of lossing. Sometimes losses that occur at the risky periods are unimportant and endurable. However, sometimes it makes the life unbearable and protection from risks becomes indispensable. People always try to raise their wealth level by minimizing risks and maximizing success probabilites. Hence, thanks to this aim risk management becomes a science today. In this study ,types of insurances, insurance terms and the concept of risk are mentioned primarily. Then, informations about the process of determining insurable risks and measuring their levels are given. In addition, approach of an insurer about the risk and risk management studies intended for minimizing the insurable risks are discussed in detail. Pricing process of various insurance companies in Turkey is also mentioned. Finally, a sample application about a fire insurance is given and an insurer?s underwriting ,advises and decision are remarked. Key Words: Insurance, Risk Management, Application Method of Fire Risk