Mary Frederick answered
Insurance is many things to many people. The main purpose of insurance is to guarantee reimbursement in the case of losses, covered under a particular insurance contract. Insurance is a prepaid business, a method whereby people can provide for their future, and the future of others. Knowing you have coverage protection, against future loss allows people to feel safe.
Insurance companies work on the basis of law and economics, they are in the business of risk management. Insurance is meant to be an equitable transfer of risk from the insured to the insurer. Insurance companies in turn invest premiums, paid by the insured, in order to share their risk with another entity for a fee. However, it does not always work this way, and sometimes the payments to the insured out weigh the risks for the company. Sometimes a company may default in making payments for covered risks, for many different reasons. Some are just and some are not just reasons, for denial of payment. This in not the norm, however in the insurance industry.
Insurance companies provide all types of coverage such as health, vehicles, homeowners, prescription drugs, floods, mortgages, life, disability, and policies to cover expenses not paid by the primary insurer. There is also title insurance, which guarantees ownership; partner insurance for partners to insure each other against loss of life, or ability to function actively as a partner. We can insure our jewelry, musicians can insure their instruments and even their body parts; a trumpeter may insure his lips against temporary or permanent injury. Baseball pitchers insure their pitching arm, and runners may insure their legs. There is little, which we cannot get someone to sell an insurance contract for protection against loss.
The insurance industry is an honorable industry, for those companies, and individuals who are honest, and provide just and equitable service, and premiums in line with true risk. As in all business, there individuals and companies who are in the business for financial gain alone. However, someone who really wants to help people, and provide service will do well in the industry. Insurance can become far more than just a job, it can become a means for helping to better the lives of others.
Insurance companies work on the basis of law and economics, they are in the business of risk management. Insurance is meant to be an equitable transfer of risk from the insured to the insurer. Insurance companies in turn invest premiums, paid by the insured, in order to share their risk with another entity for a fee. However, it does not always work this way, and sometimes the payments to the insured out weigh the risks for the company. Sometimes a company may default in making payments for covered risks, for many different reasons. Some are just and some are not just reasons, for denial of payment. This in not the norm, however in the insurance industry.
Insurance companies provide all types of coverage such as health, vehicles, homeowners, prescription drugs, floods, mortgages, life, disability, and policies to cover expenses not paid by the primary insurer. There is also title insurance, which guarantees ownership; partner insurance for partners to insure each other against loss of life, or ability to function actively as a partner. We can insure our jewelry, musicians can insure their instruments and even their body parts; a trumpeter may insure his lips against temporary or permanent injury. Baseball pitchers insure their pitching arm, and runners may insure their legs. There is little, which we cannot get someone to sell an insurance contract for protection against loss.
The insurance industry is an honorable industry, for those companies, and individuals who are honest, and provide just and equitable service, and premiums in line with true risk. As in all business, there individuals and companies who are in the business for financial gain alone. However, someone who really wants to help people, and provide service will do well in the industry. Insurance can become far more than just a job, it can become a means for helping to better the lives of others.