What is insurance?

Characterstic of insurance Types of insurance Principle of insurance Reinsurance Conclusion

Insurance is a method of providing protection against financial losses due to any accident. The main function of insurance is the distribution of losses of a few by collecting contributions from many.

SHARING OF LOSSES PAYMENT OF FORTUITOUS LOSSES RISK TRANSFER COMPENSATION

PRIMARY

SECONDARY

OTHER FUNCTION

INSURER

INSURED

UTMOST GOOD FAITH INSURABLE INTEREST CONTRIBUTION

TYPES OF INSURANCE

LIFE INSURANCE

GENERAL INSURANCE

LOSS PREVENTION

COMPENSATION OF LOSS

SOURCE OF INVESTMENT FUNDS

Reinsurance is an arrangement whereby an original insurer tranfers a part of risk out of the total risk assumed by him from the insured to another insurer..

Retain a part of the risk less than 10% Balance risk re-insured Re-insurance is the insurers insurance The backbone of the insurance business Provides better spread of risk in market,allows primary insurer to accept risk beyond there capacity settle accumlated losses from catastrophic event. All insurance company have to give 20% of there reinsurance business to GIC

INSURANCE IS SUMMED AS UP AS PRAYING FOR THE BEST,BEING PREPARED FOR THE WORST

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