The loss may or may not be financial, but it must be reducible to financial terms. The insurance transaction involves the policyholder assuming a guaranteed, known, and relatively small loss in the form of a payment to the insurer (a premium) in exchange for the insurer's promise to compensate the insured in the event of a covered loss. A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an insured. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.Īn entity which provides insurance is known as an insurer, insurance company, insurance carrier, or underwriter. Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. For other uses, see Insurance (disambiguation).Īn advertisement for a fire insurance company Norwich Union, showing the amount of assets in coverage and paid insurance (1910) Financial market participants
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |