The practice of reducing an insurer’s exposure to risk based on predictions of future loss. Loss control includes situations such as risk management, claims management, business interruption, insurance fraud, product liability and catastrophe.
Sometimes involving reinsurers, insurance loss control helps ensure that monies remain available to pay claims without the threat of bankruptcy or insolvency. It’s a means of proactively managing, minimizing or eliminating loss in order to maintain business and its profitability.