What is the Definition of Insurance?

What is the Definition of Insurance?

A system to make large financial losses more affordable by pooling the risks of many individuals and business entities and transferring them to an insurance company or other large group in return for a premium.


Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/

What is the Definition of Insurance?

Label: Insurance

Theme: Dictionary of Insurance Terms

What is the Definition of Insurance?

Check out other definition of insurance terms below:


What is the Meaning of RISK MANAGEMENT In Insurance Terms?

Management of the varied risks to which a business firm or association might be subject. It includes analyzing all exposures to gauge the likelihood of loss and choosing options to better manage or minimize loss. These options typically include reducing and eliminating the risk with safety measures, buying insurance, and self-insurance.


What is the Meaning of RISK-RETENTION GROUPS In Insurance Terms?

Businesses that band together to self-insure and form an organization, which is chartered and licensed as an insurer in at least one state, to handle liability insurance.


What is the Meaning of RISK-BASED CAPITAL In Insurance Terms?

The need for insurance companies to be capitalized according to the inherent riskiness of the type of insurance they sell. Higher risk types of insurance, liability as opposed to property business, generally necessitate higher levels of capital.


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