Most people and businesses have a natural need for security and protection from risks. Such risks are manifold: people can become ill or unemployed, something can be stolen from them or they can have an accident. Businesses are also faced with a variety of risks: a warehouse can burn down, goods can be destroyed during transport or a principal debtor files for bankruptcy. Insurance companies offer insurance to protect against a large number of risks.
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Goals of insurance companies
Insurance is an agreement to transfer a certain risk to an insurer against payment of a premium. The aim of insurance companies is to achieve an appropriate risk distribution by pooling many similar risks for policyholders.
Duties of insurance companies
It is therefore the task of insurance companies
To replace damage, e.g. B. in fire insurance;
Mitigate damage, e.g. B. both health and accident insurance;
To take precautionary measures, e.g. B. in life insurance;
Raise awareness and inform the insured about the causes of damage and how to avoid them;
Develop safety regulations;
To develop preventive measures and to bear the costs incurred;
To provide support for institutions that avert or help avoid dangers (e.g. fire brigade).
Types of insurance companies
A distinction must be made between the following types of insurance companies:
The social insurance as compulsory insurance consists of the branches health insurance, pension insurance, unemployment insurance, accident insurance, nursing care insurance.
The private insurance companies operate the individual insurance business. This includes personal insurance and goods insurance (property insurance and property insurance).
The private insurances are almost exclusively voluntary insurances. There are exceptions, however: B. the conclusion of a car insurance requirement for the registration of the vehicle.