What is Insurance?
What is Insurance? Insurance is a financial mechanism designed to provide protection against financial loss or risk. It operates on the principle of risk management, where individuals or businesses pay regular premiums in exchange for compensation in the event of specific losses. These losses could be due to various unforeseen events such as accidents, illness, damage to property, or death. Insurance helps mitigate the financial burden of these events by spreading the risk across a larger group of policyholders. In simple terms, insurance is a contract between the insured (the policyholder) and the insurer (the insurance company), where the insurer agrees (adsbygoogle = window.adsbygoogle || []).push({}); o compensate the insured for certain types of loss, damage, or liability in exchange for regular premium payments. The Basics of Insurance Insurance works based on the concept of pooling resources from a large group of people, businesses, or entities. Each participant ...