1. Erie Insurance has been working with Roost Home Telematics to install sensors in homes to
detect water leaks as well as humidity and freezing temperature situations. Once contacted by
water, the sensor can set off an alarm in the home and send an alert to the owner’s
smartphone.
a. This example is most closely associated with which risk control technique?
b. Why is this an example of risk control? In other words, how does it impact the risk (how does
fit into the goals of risk control )?

2. Suppose a firm decides to self-insure, they may also purchase stop loss insurance for what purpose? In other words, what role does stop loss insurance play in the operation of a self-insured plan?

3. The use of captives to transfer cyber risk has increased significantly in the past two years.
Why firms would use captive as a technique to cover their cyber risk exposure ? In other words, what market conditions and advantages of captive led to their increased use?

4. When firms engage in retention as a risk financing strategy, what exactly does this mean?