Introduction to the Insurance Industry (car insurance, health insurance, life insurance etc)

The insurance industry enable individuals and business corporations manage their risk mainly buy shifting the risks that they do not want to bear. An insures antity (private of corporation) may be referred to as policyholder, can insure himself against a wide variety of risks. The most popular insurance policies offered in the insurance market are car insurance, home insurance, health insurance, life insurance and indemnity insurance.

The insurance industry is actually all about providing full protection against losses that might happen due to veriaty of perils. If a damage covered by the insurance policy happens, the policyholder get a financial compensation at the value of the damage that recover his situation at it was before the damage. Sample damages covered by insurance are: car accidents (car insurance), theft of property (home insurance), fire or storm damage (home/premise insurance), medical expenses (health insurance), and loss of income due to disability or death (life insurance, employees insurance).

The main players in the insurance industry are insurance carriers (insurers), insurance agencies and brokerages. Insurance carriers are companies that "manufacture" the insurance - they assume the risks covered by the policy in return for insurance premium paid to the company. Insurance agencies and brokerages usually sell the insurance policies for the insurers.