What is Insurance?
Insurance is a means of protection against financial loss. It is a form of risk management that is used primarily to protect against the risk of conditional or uncertain damage.
An insurance company is known as an insurer, insurance company, insurance company or insurer. A person or entity that takes out insurance is called an insured person or a policyholder. The insurance undertaking provides that the insured person assumes a relatively minor loss guaranteed and known in the form of a payment to the insurer in exchange for the promise of the insurer to indemnify the insured in case of a covered loss . The damage may or may not be of a financial nature, but it must be financially reducible and normally includes something in which the insured has an insurable interest based on ownership, possession or an existing relationship.
The insured receives a policy called an insurance policy, which defines the conditions under which the insurer pays the insured. The amount of money that the insurer charges the policyholder for the coverage defined in the insurance policy is called a premium. If the insured person suffers damage that may be covered by the insurance policy, it submits a claim to the insurer so that it can be treated by a claims adjuster. The insurer can cover its own risks by taking out reinsurance, another insurer undertaking to assume some of the risks, especially if the insurer considers it too important.
General or non-life insurance policies, including home and auto insurance policies, provide for payments based on the loss of a particular financial event. General insurance is generally insurance that is not considered life insurance. In the United States and Canada, we talk about property and casualty insurance and, in continental Europe, property insurance.
In the United Kingdom, insurance is divided into three areas: private insurance, commercial insurance and the London market.
The London market provides significant business risks such as supermarkets, football players and other very specific risks. It includes a number of insurers, reinsurers, P & I clubs, brokers and other companies that usually have their physical headquarters in London. Lloyd’s of London is a major player in this market. The London market also holds reinsurance interests in private and commercial customer transactions in Germany and abroad.
Commercial line products are generally designed for relatively small legal entities. These include employee compensation (employer liability), third party liability, product liability, fleet of merchants and other general insurance products sold to many organizations in a relatively normal manner. Many companies offer comprehensive insurance packages for businesses, including shops, restaurants and hotels.
Personal Lines products are designed to be sold in bulk. This would include cars (private car), owner (household), pet insurance, creditor insurance, etc.
ACORD, the global standards organization for the insurance industry, has set standards for residential and business customers and has developed these XML standards, standard insurance applications and currency certificates in conjunction with Australian general insurers.
Types of general insurance
General insurance can be divided into the following categories:
- Car Insurance: Car insurance can be divided into two groups, two-wheel insurance and four-wheel insurance.
- Health insurance: Common types of health insurance include individual health insurance, family health insurance, comprehensive health insurance and critical illness insurance.
- Travel insurance: Travel insurance can be divided into two categories: individual travel insurance, family travel insurance, student travel insurance and health insurance for the elderly.
- Home insurance: Home insurance protects a home and its contents.
- Transportation Insurance: Transportation insurance covers goods, freight, freight and other interest against loss or damage during transportation by rail, road, sea and / or air.
- Commercial Insurance: Commercial insurance covers solutions for all sectors of activity.