What Is Insurance?

What is Insurance?

According to Wikipedia, Insurance: is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.

An entity which provides insurance is known as an insurance, insurance company, insurance carrier or underwriter. A person or entity who buys insurance is known as an insured or as a policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial. but it must be reducible to financial terms. and usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship.

The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insurer will compensate the insured. The amount of money charged by the insurer to the policyholder for the coverage set forth in the insurance policy is called the premium. If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster. The insurer may hedge its own risk by taking out reinsurance, whereby another insurance company agrees to carry some of the risk, especially if the primary insurer deems the risk too large for it to carry.

CLASSIFICATION OF INSURANCE

In principle, Insurance is divided into four classes:

*Marine 

*Fire 

*Life 

*Accident

Marine is the oldest class in insurance business. It's history is closely linked with that of trade and navigation. Ocean marine insurance was written as early as the 14th Century.

Life Insurance was introduced on June 18, 1536 while Fire Insurance started a year after the great fire of London of 6th September 1666.

Accident insurance started last..

What qualifies for insurance? Anything, and everything, valuable to you or the success of any organization, qualifies for insurance. 

There is an insurance cover for organizations and their staff, Buildings, Motor vehicles, Goods, Possessions, e.t.c.

Insurance exists primarily for your benefit, if you really see them from the right perspective. All that is required is proper knowledge and thorough understanding of Insurance.

Need to discuss your insurance needs? 

Get in touch with us via: +234-810-160-8890, 

                                       +234-809-862-6842