Insurance companies are prone to many risks in running the insurance business which can be classified as (a) Insurance Risks: Insurance risks such as product risk being priced inappropriately or mis-sold to the customers and the risk of the entity not being adequately insured. (b) Financial or Investments Risks reflect the exposure of the business to the performance of the investment market. Investment risk include equity/property risks, currency risk, interest rate risk, credit risk, liquidity risk or the asset liability mismatch risk. (c) Strategic risks arising from the inability to adapt to change in the business environment including economic changes, changes in competition, social change, regulatory change, operational risks.