Scribd
Upload
7 views2 pages

Introduction To Insurance 01

The document provides an overview of insurance, defining it as a financial arrangement that protects against financial loss and emphasizing its importance in risk management and financial security. It outlines various types of insurance, including life, health, auto, and homeowners/renters insurance. Additionally, it explains the insurance process, including premiums, deductibles, claims, and the role of actuaries in assessing risk.

Uploaded by

doreme1900
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as RTF, PDF, TXT or read online on Scribd
7 views2 pages

Introduction To Insurance 01

The document provides an overview of insurance, defining it as a financial arrangement that protects against financial loss and emphasizing its importance in risk management and financial security. It outlines various types of insurance, including life, health, auto, and homeowners/renters insurance. Additionally, it explains the insurance process, including premiums, deductibles, claims, and the role of actuaries in assessing risk.

Uploaded by

doreme1900
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as RTF, PDF, TXT or read online on Scribd
You are on page 1/ 2

Page 1: Introduction to Insurance

1. What is Insurance?
 Definition: A financial arrangement that provides protection
against financial loss.
 Purpose: To mitigate risks by transferring the financial
burden from an individual to an insurance company.
2. Importance of Insurance
 Risk Management: Helps manage unforeseen events and
financial uncertainties.
 Financial Security: Provides support to families and
businesses during adverse situations.
 Encourages Savings: Many insurance policies have a savings
or investment component.
3. Types of Insurance
 Life Insurance: Provides beneficiaries with financial support
after the policyholder’s death.
 Health Insurance: Covers medical expenses for illnesses and
injuries.
 Auto Insurance: Protects against damages to vehicles and
liability in case of accidents.
 Homeowners/Renters Insurance: Covers damages to
home/property and personal belongings.

Page 2: How Insurance Works


1. The Insurance Process
 Premiums: Regular payments made by policyholders to
maintain coverage.
 Deductibles: The amount the insured pays out of pocket
before insurance kicks in.
 Claim: A request for payment under the terms of the
insurance policy.
 Underwriting: The process where the insurer evaluates risk
and determines premium rates.
2. Risk Pooling
 Concept of pooling together the premiums of many
policyholders to cover the losses of a few.
 Balance of risk and financial stability for the insurance
provider.
3. The Role of Actuaries
 Professionals who analyze statistical data to assess risk and
help set premiums.

You might also like