Insurance and Risk Management

Insurance and Risk Management
Insurance, in law and economics, is a form of risk management primarily used against the risk of a contingent loss.
The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium.
Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly loss.
History of Insurance
Insurance appears simultaneously with the appearance of human society. We know of two types of economies in human societies: Money Economies (with markets, money, financial instruments and so on) and non-money or Natural Economies (without money, markets, financial instruments and so on).
Insurance appears simultaneously with the appearance of human society. We know of two types of economies in human societies: Money Economies (with markets, money, financial instruments and so on) and non-money or Natural Economies (without money, markets, financial instruments and so on).
Insurance Companies
Insurance Companies are risk bearers; in other words, they bear risk that individuals are willing to pay to avoid the risk of death, disability, property loss, investment fluctuation etc.
Insurance companies receive premiums in exchange for underwriting risks invest premiums to meet future liabilities and make profit. insurance company liabilities are contingent liabilities they depend on the certain events in future time and amount of liabilities are uncertain depending on type of insurance an insurance company's
Profit/loss = Premiums + Investment income - Claims - Overhead.
Insurance companies may be classified into two groups:
Life insurance companies:
Which sell life insurance, annuities and pensions products.
Non-life insurance companies:
General or Property/Casualty insurance companies which sell other types of insurance.
General insurance companies...