The role of insurance,

  The role of insurance,

 

 The role of insurance, what is it? Today we will offer you on the blog an article dedicated to the purpose of insurance and introduce you to the main categories of insurance.

The definition of insurance
Insurance, the different types that exist
At the level of organizations
In terms of types of insurance
Non-life insurance including non-life insurance
Life insurance
Role of insurance
Definition of insurance and objective

To begin with, and as you might expect, the purpose of insurance is to cover an insured person against a loss that they may experience. The aim is to provide the best possible protection against hazards and possible damage so that the latter can, in the event of an occurrence, pose as few problems as possible by creating compensation systems if necessary.

Insurance, the different organizations and categories of insurance

The different organizations in the insurance world

Either they are insurance companies, which are companies governed by the Insurance Code, and whose customers become policyholders; either they are mutual insurance companies (more often called mutual insurance companies); or they are provident institutions (the latter being governed by the social security code and not covering all types of risks, but more specifically those related to illness, disability, death, etc. ).

The different types of insurance in terms of their function

There are two main types of insurance, Life and Non-Life.

Non-life insurance

In this category, let's go into more detail about the meaning of IARD that you may have already seen and / or heard several times. This is an acronym that stands for Incident - Accident - Miscellaneous Risks. This category includes property insurance and liability insurance. Insurance in the P&C category operates with a distribution mode of management of premiums collected from policyholders (this means that the premiums are managed collectively, and that those collected from the community of policyholders are used to compensate policyholders who experience a claim, all in one and the same exercise).

Life insurance

Life insurance, for its part, represents insurance that operates with a capitalization mode of management. This method is different from the first insofar as it is an individual management method, in which the premiums collected for an insured are paid back to him at the time of the loss or, at the end of the period as defined in the contract. (life insurance contract for example).

What are the other roles of insurance?

When we think of the role of insurance, we often limit ourselves to the fact that they are used to compensate in the event of a problem. If this is indeed their vocation, fortunately they fulfill, through this vocation, many other missions:

Indeed, among other things, insurance:

secure trade,
secure, and therefore in doing so, promote investments for both professionals and individuals,
can allow you to benefit from legal assistance,
can finance the intervention of external service providers to repair property that has suffered damage,
can finance care for people who have an accident
...