Insurance companies are called insurers. The business of insurance is to bring together persons with common insurance interest, collect the share or contribution from all of them and payout compensations to those who suffer from the risks.
Life insurance includes all risks related to the lives of human beings and general insurance covers the rest. General insurance has three classifications, FIRE (dealing with all fire related risks), MARINE(dealing with all transport related risks), MISCELLANEOUS (dealing with all other liability, fidelity, motor, crop, engineering, construction, aviation, personal accident etc,.. ). Personal accidents and sickness insurance which are related to human beings.
The premium for insurance is based on expectations of the loses. These expectations are based on studies of occurrences in the past and the use of statistical principles. The business of insurance is one of sharing. It spreads losses of an individual over group of individuals who are exposed to similar risks. People who suffer loss get relief because at least part of their loss is made good. People who do not suffer loses are relieved because they were spared the loss.
business of insurance
Insurance companies are called insurers. The business of insurance is to bring together persons with common insurance interest, collect the share or contribution from all of them and payout compensations to those who suffer from the risks.
Life insurance includes all risks related to the lives of human beings and general insurance covers the rest. General insurance has three classifications, FIRE (dealing with all fire related risks), MARINE(dealing with all transport related risks), MISCELLANEOUS (dealing with all other liability, fidelity, motor, crop, engineering, construction, aviation, personal accident etc,.. ). Personal accidents and sickness insurance which are related to human beings.
The premium for insurance is based on expectations of the loses. These expectations are based on studies of occurrences in the past and the use of statistical principles. The business of insurance is one of sharing. It spreads losses of an individual over group of individuals who are exposed to similar risks. People who suffer loss get relief because at least part of their loss is made good. People who do not suffer loses are relieved because they were spared the loss.