Insurance Overview
Insurance is something that almost all of us will need sometime, and it is worth understanding it before buying it.
Various types of insurance include vehicle insurance, which includes auto, motorcycle, and boat insurance, health insurance, life insurance, home insurance, travel insurance, personal property insurance, keyman insurance, dental insurance, rental insurance, and more.
Often, insurance is required - especially in the cases of motor insurance. Other times, it is a safeguard.
Insurance is a form of risk-management which spreads risk of many people in exchange for small payments from each. Specifically, insurance transfers some type of risk (accident, theft, natural disaster, illness, etc) from one person or group to a more financially-sound entity in exchange for a payment (also known as a premium). Premiums are often annual or monthly, but depending on the type of insurance they can be at other intervals. The terms of the insurance arrangement is defined in the insurance policy.
For example, a consumer can pay a certain amount to an insurer such as Motley Fool each year to insure that person's car. This sum represents the insurance company's assessment of the likelihood that the car will be damaged or wrecked. These data are normally taken from historical figures relating to the age, sex, profession, driving record, and accident history of the insured, as well as statistics concerning make and model of the car and its accident record, as well as the engine size, number of passengers, and even color of the vehicle.
Statistically, if the make and model of the vehicle in question, and/or its driver have been in numerous accidents, the insurance company will charge a higher premium in order to hedge expected losses. As the risk increases, so too do the premiums. In fact, sometimes, insurance companies will not even insure certain people and/or vehicles as the chance of them having to make a payout (in the event of an accident) will be almost guaranteed.
Types of Insurance
1.Motor insurance
This includes automobile, truck, motorcycle, aircraft, boat, or any other form of motorized transportation. It is perhaps the most common type of insurance, and is required by law in many countries.
Motor insurance covers the insured party against financial loss that he may incur to repair his vehicle or a third party’s in the event of an accident. In return for annual or semi-annual premiums, the insurance company is bound to pay any losses as described in the policy. Such a policy may include property, liability or third party, and medical coverage.
Property coverage insures damage to or theft of a vehicle; liability covers bodily injury or property damage that may occur as a result of the insured’s actions, and medical coverage pays any fees necessary for bodily injuries, rehabilitation and in some cases foregone wages and funeral costs.
In many countries, all of these types of automovile insurance are required of vehicle owners. In some countries, or states, only third party is required. However, in the case of new vehicles, any banks which may be financing the vehicle may require full insurance as a condition of financing.
2.Health insurance
Most developed nations have government-funded health care which means that most or all citizens have access to medical facilities and treatment, as well as health insurance.
For example, the National health Service (NHS) in the United Kingdom pays for citizens’ medical needs. However, in the US, there is no government-funded health policy - whether for insurance or treatment. As a result, US citizens and residents must be insured or risk facing astronomical medical bills, garnishing of wages, and bankruptcy. Often, medical insurance (both health and dental) is included in employee benefit packages in the US and other countries. Nevertheless, the issue of affordable health insurance and treatment in the US is one of the most controversial and heated topics, as many cannot afford either. If you live in a country without comprehensive national health care, then low cost health insurance is a vital requirement.
3.Disability insurance
This form of insurance protects workers from injuries and illnesses which prevent them from doing their jobs. It can pay for existing commitments the policyholders may have such as outstanding bills, mortgages, utilities, and more.
Workers’ compensation is common in the US, and pays a worker his wages and medical expenses in the event of an injury on the job.
Permanent disability which prevents a worker from ever working again is covered by total permanent disability insurance. This provides the disabled employee with benefits for the rest of his or her life, or according to the terms specified in the policy. Companies can purchase a similar type of insurance, called, disability overhead insurance. This pays for ongoing overhead costs of a business while the owners are not able to work.
4.Property insurance
This type of insurance typically covers things like homes, machinery, crops, valuable goods, shipped cargo, rented property (homes or apartments), and more.
It can cover damages as a result of various activities including acts of God (earthquakes, floods, storms, hurricanes, etc), vandalism, terrorism, fraud, and more.
5.Liability insurance
This covers negligent acts of an insured party with reference to a vehicle or a home. It protects the insured against legal claims and indemnification.
There are various types of liability insurance such as professional indemnity insurance Environmental liability insurance and Prize indemnity insurance .
Professional indemnity insurance protects employees from malpractice suits (as in the medical profession), errors and omissions (by appraisers, home inspectors, realtors, insurance agents, notaries, and others), and other acts of unintentional workplace negligence.
6.Credit insurance
This is taken by lenders who need coverage against the people that have credit with them (borrow money). In the event of their inability to pay it back (usually due to unemployment, disability, or death), this insurance protects the lender.
There are many other kinds of insuance, and even each of the major categories mentioned above has dozens of variations and types. They differ depending on the markets, the understanding of risk and availability of historical data, government regulation and law, cultural perceptions and expectations, and more.
7.Travel insurance
Travel insurance covers financial losses caused by trips abroad. Depending on the policy in question, in may cover lost luggage, theft of personal possessions, medical costs and delayed flights.
The internet has become an extremely popular means to find cheap holiday insurance.
Thursday, May 20, 2010
World Insurance Companies
World Insurance Companies
The top insurance companies of the world make up a major part of the financial services worldwide, and a huge part of insurance worldwide. Adoption of financial market reforms by almost all the countries worldwide has given birth to a more competitive environment in this sector than in the past.
Despite the financial shakeout which began in September 2008, insurance companies are still forging ahead. While many people have lost their homes and jobs, insurance is one product many people cannot live without. Whether by law or by necessity, people still have car, health, life and other types of insurance in effect. Most of the top insurance companies of the world remain financially robust, with some exceptions.
Furthermore, with more people owning vehicles, homes, and more people earning greater amounts worldwide, the need to have them insured has emerged, creating an entirely new segment for the top insurance companies of the world. This is particularly true in emerging markets such as India and China where this phenomenal grotwh has occured.
Note that the housing slump and automotive meltdown in the US have put a considerable damper on adoption of new policies there, and in Europe, but again, India and China remain strong. The big insurers in this sector, including the top insurance companies of the world have stepped forward with their strategies to adapt to the changing global landscape and markets.
In this section we cover the top insurance companies of the world, their financial positions, and international operations. Apart from each company's performance, we cover the countries' participation in the insurance business such as the total number of insurers in each country and the total amount of premiums, including life premiums and non-life premiums.
Insurance is a major aspect in any kind of enterprise in the world since man knows what's there in store in future. The idea of insurance has been in practice since ancient days in some form or the other. The increasing importance of insurance has led to the emergence of a global insurance industry and insurance companies have gained in stature around the world.
History of Insurance Companies :
To talk about the insurance companies, insurance in modern form had occurred after the Great Fire in London in 1666 which destroyed myriad houses. Nicholas Barbon, following the disaster, had established England's first fire insurance company (The Fire Office) in1680. In the United States, the first insurance company which provided fire insurance was formed in in South Carolina, in 1732.The practice of perpetual insurance against fire was popularized by Benjamin Franklin. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses . In India, the Oriental Life Insurance Company was started in 1818 by Europeans, much before independence.the first indigenous insurance company in India was started in the year 1870 in the form of Bombay Mutual Life Assurance Society.
Types of Insurance Companies :
Insurance companies are mainly classified into:
Life insurance companies (those which deal with life insurance, annuities and pensions products)
Non-life or general insurance companies
The first category of insurance companies handles a long-term business, covering risks of a person's life or his/her pension over a long period of time. Examples of such insurance companies are: American National Insurance Company in the USA, the Life Insurance Corporation in India, etc.
As against that, non-life insurance companies usually cover a shorter period, like for example, American Medical Security Life Insurance Company in USA, Bajaj Allianz General Insurance of India, etc.
In most of the countries, life and non-life insurers are subject to different regulations.
Besides, there are other kinds of insurance companies:
Mutual insurance companies are those insurance companies which are owned by the policyholders
Stock insurance companies are owned by stockholders
Reinsurance companies are those insurance companies that sell policies to other insurance companies to reduce risks and protect themselves from gigantic losses
Captive Insurance companies are limited purpose insurance companies established for financing risks arising from their parent group(s). [The types of risk include property damage, public and products liability, professional indemnity, etc.]
Insurance consultant companies are paid by the customer to find out the best insurance policy amongst various companies
Third party administrator companies perform underwriting and even sometimes claims handling services for insurance companies
The top insurance companies of the world make up a major part of the financial services worldwide, and a huge part of insurance worldwide. Adoption of financial market reforms by almost all the countries worldwide has given birth to a more competitive environment in this sector than in the past.
Despite the financial shakeout which began in September 2008, insurance companies are still forging ahead. While many people have lost their homes and jobs, insurance is one product many people cannot live without. Whether by law or by necessity, people still have car, health, life and other types of insurance in effect. Most of the top insurance companies of the world remain financially robust, with some exceptions.
Furthermore, with more people owning vehicles, homes, and more people earning greater amounts worldwide, the need to have them insured has emerged, creating an entirely new segment for the top insurance companies of the world. This is particularly true in emerging markets such as India and China where this phenomenal grotwh has occured.
Note that the housing slump and automotive meltdown in the US have put a considerable damper on adoption of new policies there, and in Europe, but again, India and China remain strong. The big insurers in this sector, including the top insurance companies of the world have stepped forward with their strategies to adapt to the changing global landscape and markets.
In this section we cover the top insurance companies of the world, their financial positions, and international operations. Apart from each company's performance, we cover the countries' participation in the insurance business such as the total number of insurers in each country and the total amount of premiums, including life premiums and non-life premiums.
Insurance is a major aspect in any kind of enterprise in the world since man knows what's there in store in future. The idea of insurance has been in practice since ancient days in some form or the other. The increasing importance of insurance has led to the emergence of a global insurance industry and insurance companies have gained in stature around the world.
History of Insurance Companies :
To talk about the insurance companies, insurance in modern form had occurred after the Great Fire in London in 1666 which destroyed myriad houses. Nicholas Barbon, following the disaster, had established England's first fire insurance company (The Fire Office) in1680. In the United States, the first insurance company which provided fire insurance was formed in in South Carolina, in 1732.The practice of perpetual insurance against fire was popularized by Benjamin Franklin. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses . In India, the Oriental Life Insurance Company was started in 1818 by Europeans, much before independence.the first indigenous insurance company in India was started in the year 1870 in the form of Bombay Mutual Life Assurance Society.
Types of Insurance Companies :
Insurance companies are mainly classified into:
Life insurance companies (those which deal with life insurance, annuities and pensions products)
Non-life or general insurance companies
The first category of insurance companies handles a long-term business, covering risks of a person's life or his/her pension over a long period of time. Examples of such insurance companies are: American National Insurance Company in the USA, the Life Insurance Corporation in India, etc.
As against that, non-life insurance companies usually cover a shorter period, like for example, American Medical Security Life Insurance Company in USA, Bajaj Allianz General Insurance of India, etc.
In most of the countries, life and non-life insurers are subject to different regulations.
Besides, there are other kinds of insurance companies:
Mutual insurance companies are those insurance companies which are owned by the policyholders
Stock insurance companies are owned by stockholders
Reinsurance companies are those insurance companies that sell policies to other insurance companies to reduce risks and protect themselves from gigantic losses
Captive Insurance companies are limited purpose insurance companies established for financing risks arising from their parent group(s). [The types of risk include property damage, public and products liability, professional indemnity, etc.]
Insurance consultant companies are paid by the customer to find out the best insurance policy amongst various companies
Third party administrator companies perform underwriting and even sometimes claims handling services for insurance companies
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