Based on the definition, we find that insurance means a situation in which a person protects himself from risk, reduces the effects of uncertainty and distributes losses. Other explanations relate to the situation when a certain amount of money received from someone by an insurance company agrees to pay compensation or provide services to that person if and when that person experiences the type of loss specified in the insurance contract; The explanations show that the insurance company is involved in this, because these are people who agree with the person who buys the insurance policy from any of their property.
Another way in which insurance companies reward those who are in their service is that the contribution of many is used to compensate for the few who have been affected by the misfortune of the insured. So the loss of several people is common to many.
Among other functions, the main function of an insurance company is to take risks, financial losses of people are reasonably spread over many people, for example in the case of a fire the insured with fire insurance pays a premium for a joint group to compensate those who incur losses.
1. The insurance industry encourages savings (i.e., saving money), especially through life insurance, which provides the means to cover the costs of maintaining a family, social security and old age. It offers jobs for those interested in working with the industry.
Insurance companies cooperate with commerce. It owes its existence to trade (that is, in general, both for industry and for an industry), and exchange trade owes its strong stability to insurance since it helped to strengthen the general trend in business in various ways.
Before moving on to other functions, we will explain these two concepts: the insurer; insured because it will help us to understand.
Insured: This is a website that affects insurance, in other words, a natural or legal person accepting an insurance policy. You can do this directly or indirectly or through an agent or broker.
Insurer: This is the site that provides protection in accordance with the policy. The insurer covers any other date that includes the insurer, who is a senior employee of the insurance company, whose business is to take new actions for the company.
The insurance company has a contract that promises to pay compensation in the future in exchange for compensation, called a bonus (i.e. Money paid by the insurer for the insurance coverage specified in the policy). As in other contracts, this means that contracts are based on the terms of offer and acceptance, remuneration and the possibility of entering into contracts.
The insurer, by virtue of its main function, collects large funds, which are as fiduciary and from which claims and losses.
Some countries have their insurance companies operating to extent of internationally hence earning huge sums in the international market in order to make sure that profits and investment income is higher than the claims made by those who incur loses at home and internationally This tells us that insurance is a significant part of this country’s invisible exports.