1. DEFINITION AND OVERVIEW OF INSURANCE INDUSTRY 1.1 INSURANCE 1.1.1 Definition of amends Insurance, in law and economics, is a form of risk management primarily utilise to circumvent against the risk of a contingent loss. OR Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, peradventure devastating loss. 1.1.2 Usually spendd terms An Insurer is a accompany selling the insurance. An Insured or Policyholder is the person or entity acquire the insurance. The Insurance rate/Premium is a factor used to determine the amount to be charged for a sealed amount of insurance coverage. Risk management, the practice of appraising and unconditional risk, has evolved as a discrete field of study and practice. 1.1.3 Insurance have following common characteristics [pic] 1.
2 History of Insurance Insurance attention is not of today solely several thousand days old ? In modern money economy, method of distributing risk were for the first time started and practised by Chinese and Babylonians traders since 3rd and 2nd millennia BC, respectively ? Achaemenian monarchs of antediluvian patriarch Persia were the first to insure their people and it was made official. People use to present gifts to the monarch as an annual premium and in return monarch use to help person in trouble in future ? Thousand years later, Rhodes introduced impression of planetary average, by which all merchants shipping their goods use to pay proportionately divided premium, which was used to reimburse merchant whose goods were jettisoned during storm ? In 600 AD, Greeks and Romans introduced the concept of health and life insurance by forming benevolent societies, which cared for the families and salaried funeral expenses of members upon death Generations of past do shaped up the industry but insurance we know today can be traced to the capital fire of... If you want to get a full essay, holy order it on our website: Ordercustompaper.com
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