What is the primary focus of "risk management" in health insurance?

The primary focus of risk management in health insurance is indeed to minimize financial losses and manage claims effectively. This involves assessing various risks that the insurer faces, such as the likelihood of a claim being filed and the costs associated with those claims. By implementing strategies to identify, evaluate, and mitigate these risks, health insurance companies can control their expenses and ensure they are prepared to handle claims efficiently.

Effective risk management helps in setting appropriate premiums, maintaining solvency, and providing coverage that aligns with the needs of policyholders while protecting the insurer's financial health. It also encompasses claims management, where procedures are established to address claims accurately and promptly, ensuring that the insurer does not incur unnecessary expenses.

While increasing the number of claims processed, maximizing profits, or negotiating rates with healthcare providers can be part of an insurer's broader operations, they are not the central aim of risk management itself. Rather, these activities may fall under different operational or business strategies within the health insurance sector.