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  • VARIOUS INSURANCE SCHEMES YOU CAN USE
    KNOW MORE ABOUT INSURANCE

    Insurance is defined as form of risk management basically used to hedge against the risk of a contingent loss. It is also the equitable transfer of a risk or loss, from one entity to another in return for a premium. The insurer is the company that sells the insurance for a premium. The premium is determined by the insurance rate, for a certain amount of risk coverage.

    The size of the loss should be sufficiently large and generally above the costs incurred in handling the claim and administering the policy. The premium should be affordable and relative to the amount of protection offered. The loss should be calculable in terms of probability of loss and the attendant cost. For the insurer there should limited risk of catastrophically large losses. In the event where there are losses to numerous policy holders at the same time, then the ability of the insurer to issue policies is restricted.

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