World Insurance

Insurance

is a form of risk management, primarily used to hedge against the risk of a contingent or an uncertain loss.

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment.

An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance policy. The

 

insurance

rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium.

Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

An insurance contract promises to make good to the insured a certain sum in consideration for a payment in the form of premium from the insured. The insured receives a contract called the

insurance

policy which details the conditions and circumstances under which the insured will be compensated.