Insurance

Insurance card in Japan

Insurance is a term in law and economics. It is something people buy to protect themselves from losing money. People who buy insurance pay a "premium" (often paid every month) and promise to be careful (a "duty of care"). In exchange for this, if something bad happens to the person or thing that is insured, the company that sold the insurance will pay the money back. (However, there are some times when the company will not have to pay the money back, such as if the person was not careful.)

Types of insurance

There are different kinds of insurance. There are life insurance and general insurance.

In life insurance, someone ensures their life or someone else's life. At the death of the insured person or on the date of maturity whichever happens earlier, the amount insured will be paid.

General insurance is a non-life policy, such as:

fire insurance
marine insurance
travel insurance^[1]
life Insurance^[2]
home insurance^[3]
car insurance^[4]
commercial insurance
business insurance^[5]
Cyber Insurance^[6]

Home Insurance

Homeowners insurance is a type of general insurance policy that covers losses and damages to the home and/or its contents. Home insurance protects homeowners from perils such as fire, flood, vandalism, theft, malicious damage, water, wind, hurricane, earthquake, the weight of snow, hail, and more. Insured perils and amount of coverage are listed in the policy documents. Coverage varies according to the type of policy. Some policies cover only the building, while some include contents. There are also other benefits that may be included in the homeowners insurance policy such as Additional Living Expenses (ALE), which is the added cost the insured incurs when using alternative accommodation due to the home being uninhabitable.

Actuaries

Actuaries are the people who figure out how much the premium should be, forecast trends, evaluate the cost impact of medical programs, design and price new products, assist in designing formulary models, and forecast the impact of risk adjustment on revenues. They balance how much the insurer might have to pay out against the chances of having to pay out. If actuaries think there is a big chance that the company will have to pay out, they will make the premium higher.

Insurance Media

An advertisement for a fire insurance company Norwich Union, showing the amount of assets in coverage and paid insurance (1910)
Merchants have sought methods to minimize risks since early times. Pictured, Governors of the Wine Merchant's Guild by Ferdinand Bol, c. 1680.
Lloyd's Coffee House was the first organized market for marine insurance.
Accidents will happen (William H. Watson, 1922) is a slapstick silent film about the methods and mishaps of an insurance broker. Collection EYE Film Institute Netherlands.
A wrecked vehicle in Copenhagen
Great Western Hospital, Swindon
Workers' compensation, or employers' liability insurance, is compulsory in some countries.
Amicable Society for a Perpetual Assurance Office, Serjeants' Inn, Fleet Street, London, 1801
This tornado damage to an Illinois home would be considered an "Act of God" for insurance purposes.