Definition: A financial risk management tool in which the insured transfers a risk of potential financial loss to the insurance company that mitigates it in exchange for monetary compensation known as the premium.
Oh looks pretty difficult..Huh.. I know as this is a very complicated definition.
Let me put a very simple one for you :
Insurance = Pay premium and get financial protection if any financial loss.
According to Wikipedia ,
Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for money. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
Types Of Insurance :
There are different types Insurance depending on the risk they mitigate.
Broad categories include
1.Life,
2.Health
3. Motor
4. travel
5. Home,
6. Rural
7. Commercial and
8. Business insurance.
Insurance companies may be categorized into two groups:
Life insurance companies : Sell life insurance, annuities and pensions products.
Non-life or property/casualty insurance companies : Sell other types of insurance.
General insurance companies : can be further divided into these sub categories :
Standard lines
Excess lines
Insurance in the United States :
Insurance in the United States alludes to the business sector for risk in the United States, the world's biggest Insurance market by premium volume. Of the $4.640 trillion.The gross premiums composed worldwide in 2013 is $1.274 trillion out of which 27% were composed in the United States.
Insurance, is an agreement in which the safety provider (stock insurance , shared insurance , Lloyd's syndicate, for example), consents to repay or reimburse another gathering (the safeguarded, the policyholder or a recipient) for determined misfortune or harm to a predefined thing (e.g., a thing, property or life) from specific dangers or dangers in return for an expense (the protection premium). For instance, a property insurance agency might consent to tolerate the danger that a specific bit of property (e.g., an auto or a house) might endure a particular sort or sorts of harm or misfortune amid a specific timeframe in return for a charge from the policyholder who might some way or another be in charge of that harm or misfortune. That understanding takes the type of a protection approach.
List of Top 25 Insurance Companies in USA :
| Ranking | Insurance Company | Net Premiums Written |
|---|---|---|
| 1 | State Farm Group | $50,808,635 |
| 2 | Allstate Insurance Group | $24,796,256 |
| 3 | Liberty Mutual Insurance Cos. | $21,483,996 |
| 4 | Berkshire Hathaway Insurance (includes Geico) | $21,358316 |
| 5 | Travelers Group | $20,594,458 |
| 6 | American International Group | $19,687,720 |
| 7 | Nationwide Group | $14,489,531 |
| 8 | Progressive Insurance Group | $14,476,676 |
| 9 | Farmers Insurance Group | $14,129,512 |
| 10 | USAA Group | $10,679,414 |
| 11 | Hartford Insurance Group | $9,688,760 |
| 12 | Chubb Group of Insurance Cos. | $8,927,736 |
| 13 | CNA Insurance Cos. | $6,188,618 |
| 14 | American Familiy Insurance Group | $5,324, 290 |
| 15 | Aliianz of America | $4,666,301 |
| 16 | Auto-Owners Insurance Group | $4,485,442 |
| 17 | Munich-American Holding Corp. | $4,413,834 |
| 18 | Zurich Finanical Services NA Group | $4,400,123 |
| 19 | Erie Insurance Group | $4,019,273 |
| 20 | Ace INA Group | $3,705,475 |
| 21 | Transatlantic Holdings Inc. Group | $3,408,020 |
| 22 | W.R. Berkley Group | $3,392,330 |
| 23 | The Hanover Insurance Group Property & Casualty Cos. | $3,053,508 |
| 24 | MetLife Auto and Home Group | $2,983,236 |
| 25 | Cincinnati Insurance Cos. | $2,965,462 |
