Insurance companies use the premiums they receive not only to settle day-to-day claims but also to generate additional income and profit by investing their funds in FINANCIAL SECURITIES (see INSTITUTIONAL INVESTORS). Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.. An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter.A person or entity who buys insurance is known as an insured or as a policyholder. The company also compensates for illness, damage, or death. Learn more. (noun) With profit life insurance policies are now commonplace, as are unit-linked policies which are directly related to fund performance (see UNIT TRUST). Life insurance business, in particular, because of its long-term contractual nature, is especially conducive to offering long-term investment returns to policy holders as well as the insurance company. Some of the key factors used to determine an insurance company’s rating include financial reserves, claims payment history, business focus, company structure, and management style. Insurance is an arrangement in which you pay money to a company, and they pay money to you if something unpleasant happens to you, for example if your property is stolen or damaged, or if you get a serious illness . This provides a measure of uniformity in the risks that are covered by a type of policy, which in turn allows insurers to anticipate their potential losses and to set premiums accordingly. Insurance companies in the UK are represented by the Association of British Insurers, which provides a forum for the discussion of matters of general concern to members and acts on behalf of members in dealings with other institutional bodies such as the Institutional Investors Committee and the government. Most insurance companies are members of Lloyd's, a corporation of insurers. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Insurance definition is - coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril. Many insurance companies employ claims management companies and other third parties to manage their customers' claims. While there are financial benefits of creating a separate entity to provide … Insurance is defined as a co-operative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to insure themselves against … The investment and management of funds by insurance companies is regulated by the FINANCIAL SERVICES AUTHORITY in accordance with various standards of good practice laid down under the FINANCIAL SERVICES ACT 1986. insurance company synonyms, insurance company pronunciation, insurance company translation, English dictionary definition of insurance company. Insurance definition, the act, system, or business of insuring property, life, one's person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a payment proportionate to the risk involved. In addition, many insurance companies offer contractual savings schemes. The investment and management of funds by insurance companies is regulated by the FINANCIAL SERVICES AUTHORITY in accordance with various standards of good practice laid down under the FINANCIAL SERVICES ACT 1986. Insurance companies in the UK are represented by the Association of British Insurers which provides a forum for the discussion of matters of general concern to members and acts on behalf of members in dealings with other institutional bodies such as the Institutional Investors Committee and the government. See FINANCIAL SYSTEM, PORTFOLIO, TRACKER FUND, INDIVIDUAL SAVINGS ACCOUNT. Insurance means a promise of compensation for any potential future losses. Some of the different types of insurance companies include: standard lines, excess lines, captives, direct sellers, domestic, alien, mutual companies, stock companies, Lloyds of London and more. How to use insurance in a sentence. Insurance refers to a contractual arrangement in which one party, i.e. All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. What does insurance-companies mean? Vox populi A contractual relationship when one party–an insurance company or underwriter, in consideration of a fixed sum–a premium, agrees to pay on behalf another–an insured, or policyholder for covered losses, up to the limits purchased, caused by designated contingencies listed in the policy. A mutual insurance company is an insurance company owned entirely by its policyholders.Any profits earned by a mutual insurance company are either retained within the company or rebated to policyholders in the form of dividend distributions or reduced future premiums. Here is a brief explanation of each of these different types of insurance companies and the specific specialty risks insured and other unique attributes. For very large insurance risks, an insurance company may resort to reinsurance, sharing the insurance premium with other insurers in proportion to the share of potential claim that they are prepared to accept. insurance meaning: 1. an agreement in which you pay a company money and they pay your costs if you have an accident…. Learn more. Their portfolios attempt to maintain a careful balance between immediate liquidity needs and longer-term investment returns. insurance definition: 1. an agreement in which you pay a company money and they pay your costs if you have an accident…. A mutual insurance company provides insurance coverage to its members and policyholders at … Insurance companies use the term coverage to mean the rupee amount of in Insurance companies use the premiums they receive not only to settle day-to-day claims but also to generate additional income and profit by investing their funds in FINANCIAL SECURITIES, particularly UK and overseas government fixed-interest bonds and corporate stocks and shares (see INSTITUTIONAL INVESTORS). The most common forms of insurance policies include life, health, automobile, homeowners' and renters', Personal Property, fire and casualty, marine, and inland marine policies. Insurance is a device not to avert these risks but to mitigate they’re rigorous on individuals. mutual insurance company definition: an insurance company owned by its members who make regular payments into a fund that will pay their…. Most insurance companies are members of LLOYDS, a corporation of insurers and INSURANCE BROKERS. Protecting yourself is not uncommon. It determines whether it would be profitable for an insurance company to take a chance on providing insurance coverage to an individual or business. Insurance companies receive their financial strength ratings from insurance rating organizations that carefully analyze and evaluate a company’s financial performance. Learn more. This protection, therefore, guarantees reimbursement from an insurance company. Plural form of insurance company. For example, insurance company X underwrites policies, and those policies are then reinsured by reinsurer Y. A captive insurance company is a form of corporate " self-insurance." In contrast, a stock insurance company is owned by investors who have purchased company stock; any profits generated … It facilitates financial protection by reimbursing losses during crisis. Browse and search thousands of Insurance Abbreviations and acronyms in our comprehensive reference resource. We call the party receiving compensation the ‘insured.’ The ‘insurer,’ on the other hand, is the company that provides the compensation or cover. Insurance companies such as the Prudential, for example, have set up estate agency chains and offer mortgages as well as products such as personal pensions, unit trusts and individual savings accounts (ISAs). In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy language. A company, which may be for-profit, non-profit or government-owned, that sells the promise to pay for certain expenses in exchange for a regular fee, called a premium. Dictionary meaning of the word “insurance” is an undertaking by a company, society or the state, to provide or safeguard against loss, provisions against sickness, death etc. ‘Group health insurance in large companies protects the individual with costly conditions by including him with the less costly.’ ‘Identity theft is becoming so widespread in the UK that many companies now offer insurance to protect against falling victim to this increasingly common type of fraud.’ insurance company definition: a company whose business is providing and selling insurance: . Notably, also the Financial Services Act has enabled insurance companies to broaden the portfolio of services and financial products they are able to offer. An insurance company credit rating is the opinion of an independent agency regarding the financial strength of an insurance company. Insurance companies create insurance policies by grouping risks according to their focus. Insurance Company. the insured, by paying a definite amount, in exchange for an adequate consideration called as premium. Insurance companies such as the Prudential, for example, have set up estate agency chains and offer mortgages, as well as products such as personal pensions, unit trusts and INDIVIDUAL SAVINGS ACCOUNTS (ISAs). In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay. An insurance company owned by its policyholders is a mutual insurance company. Insurance companies mitigate their risk by purchasing reinsurance. Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. It is a contract that provides protection to an entity against a loss. Reinsurance minimizes the liability of an insurance company and works to prevent insolvency after an extreme event results in a high amount of unexpected claims. insurance company or the insurer, agrees to compensate the loss or damage sustained by another party, i.e. The insurance company paid out for the stolen jewellery and silver. Define insurance company. Insurance is an arrangement by which a company undertakes to compensate a person, property, company, or entity for a specific loss. See more. insurance company meaning: a company whose business is providing and selling insurance: . What is Coverage? This development has introduced a powerful new competitive stimulus into the financial services industry breaking down traditional ‘demarcation’ boundaries in respect of who does what’, allowing insurance companies to ‘cross sell’ these services and products in competition with traditional providers such as BUILDING SOCIETIES, UNIT TRUSTS etc. Company Name: Times Internet Limited Registered Office Address: 9-10,Bahardurshah Zafar Marg, New Delhi - 110002 Corporate Identity Number: U74999DL1999PLC135531 https://www.thefreedictionary.com/insurance+company, His life was bounded, east, west, north, and south, by the Planet, The George who strolled that pleasant morning on the Promenade des Strangers differed both externally and internally from the George who had fallen out with Harold Flower in the offices of the Planet, The wedding presents were so numerous as to fill several rooms at the pretty retreat upon the Mole, and of an intrinsic value calling for a special transaction with the Burglary, "A detective officer," I replied, "sent down by the Burglary, Caverly was what the world of New York, in 1832, called poor; that is to say, he had no known bank-stock, did not own a lot on the island, was director of neither bank nor, "The Cooperative Commonwealth is a universal automatic, The harp is the travelling patterer for the Universe's, He was a clerk in the employment of the Porphyrion Fire, Nioche stared, as if he wondered what was coming next; but he promptly recovered himself, at a venture, and replied that he knew a very nice young man, employed by an, Dictionary, Encyclopedia and Thesaurus - The Free Dictionary, the webmaster's page for free fun content, INSURANCE SECTOR ON PAKISTAN STOCK EXCHANGE - (Quarter: January, February, March 2019), Insults Insult Similes Appear In Many Categories Throughout, Insurance Commercial Collectors Association, Insurance Commission of Western Australia, Insurance Company and Bank Purchasing Agents Association, Insurance Company Education Directors Society, Insurance Company of the State of Pennsylvania, Insurance Conference Planners Association, Insurance Congress of Developing Countries.

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