Insurance Definition

Insurance is the equitable transfer of the risk of the loss, from one entity to another in exchange with regard to payment. It is a kind of risk management primarily utilized to hedge against the chance of a dependant, uncertain loss. Insurance is outright a system of accepting risk of the Insured by this Insurer having consideration by means of premium to shield his interest through any accident. Regarding big risk the Insurer has to transfer the danger to re-insurer. Re-Insurance means distributing of risk of a single onto the shoulder of countless. Insurance is built to protect the financial well-being of individual or company regarding unexpected loss.