Insurance is important part of our life. We can make Insurance of everything's like life insurance, car insurance, households insurance etc. or many other insurances.Insurance means guaranteeing against harm or loss.
Reimbursement is made from a fund to which many individuals exposed to the same risk have contributed certain specified amounts, called premiums.
Payment for an individual loss, divided among many, does not fall heavily upon the actual loser. The essence of the contract of insurance, called a policy, is mutuality.
The major operations of an insurance company are underwriting, the determination of which risks the insurer can take on; and rate making, the decisions regarding necessary prices for such risks.
The underwriter is responsible for guarding against adverse selection, wherein there is excessive coverage of high risk candidates in proportion to the coverage of low risk candidates. In preventing adverse selection, the underwriter must consider physical, psychological, and moral hazards in relation to applicants.
Physical hazards include those dangers which surround the individual or property, jeopardizing the well-being of the insured.
The amount of the premium is determined by the operation of the law of averages as calculated by actuaries. By investing premium payments in a wide range of revenue-producing projects, insurance companies have become major suppliers of capital, and they rank among the nation's largest institutional investors.
Reimbursement is made from a fund to which many individuals exposed to the same risk have contributed certain specified amounts, called premiums.
Payment for an individual loss, divided among many, does not fall heavily upon the actual loser. The essence of the contract of insurance, called a policy, is mutuality.
The major operations of an insurance company are underwriting, the determination of which risks the insurer can take on; and rate making, the decisions regarding necessary prices for such risks.
The underwriter is responsible for guarding against adverse selection, wherein there is excessive coverage of high risk candidates in proportion to the coverage of low risk candidates. In preventing adverse selection, the underwriter must consider physical, psychological, and moral hazards in relation to applicants.
Physical hazards include those dangers which surround the individual or property, jeopardizing the well-being of the insured.
The amount of the premium is determined by the operation of the law of averages as calculated by actuaries. By investing premium payments in a wide range of revenue-producing projects, insurance companies have become major suppliers of capital, and they rank among the nation's largest institutional investors.
Truly no one can deny the benefits of insurance and any risk that is quantified can be insured. The basic idea of insurance is explained above and I would like to know about the types of insurance policies too. Please do also share some detail regarding the various types of insurance policies available in market.
ReplyDeletecommercial insurance offers