With profit life insurance policies are now commonplace, as are unit-linked policies which are directly related to fund performance (see UNIT TRUST). Insurance means a promise of compensation for any potential future losses. Most insurance companies are members of LLOYDS, a corporation of insurers and INSURANCE BROKERS. the insured, by paying a definite amount, in exchange for an adequate consideration called as premium. Insurance definition is - coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril. This protection, therefore, guarantees reimbursement from an insurance company. It is a contract that provides protection to an entity against a loss. Here is a brief explanation of each of these different types of insurance companies and the specific specialty risks insured and other unique attributes. 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). See FINANCIAL SYSTEM, PORTFOLIO, TRACKER FUND, INDIVIDUAL SAVINGS ACCOUNT. Many insurance companies employ claims management companies and other third parties to manage their customers' claims. insurance company definition: a company whose business is providing and selling insurance: . For example, insurance company X underwrites policies, and those policies are then reinsured by reinsurer Y. What does insurance-companies mean? 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 … 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. 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). mutual insurance company definition: an insurance company owned by its members who make regular payments into a fund that will pay their…. Insurance Company. It facilitates financial protection by reimbursing losses during crisis. 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 . Learn more. Reinsurers may insure insurance companies but usually insurance companies "self-insure" or set aside reserves to cover any expected payouts under the policies. 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. Learn more. insurance company meaning: a company whose business is providing and selling insurance: . (noun) Insurance companies mitigate their risk by purchasing reinsurance. What is Coverage? For example, if one purchases health insurance, the insurance company will pay for (some of) the client's medical bills, if any. Most insurance companies are members of Lloyd's, a corporation of insurers. The most common forms of insurance policies include life, health, automobile, homeowners' and renters', Personal Property, fire and casualty, marine, and inland marine policies. ‘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 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). Life insurance business, in particular, because of its long-term contractual nature, is especially conducive to offering long-term investment returns to policyholders as well as the insurance company With profit life insurance policies are now commonplace, as are life insurance policies linked to the provision of MORTGAGE finance for house purchase. In contrast, a stock insurance company is owned by investors who have purchased company stock; any profits generated … insurance meaning: 1. an agreement in which you pay a company money and they pay your costs if you have an accident…. 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. insurance company or the insurer, agrees to compensate the loss or damage sustained by another party, i.e. 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. 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. 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. in … Insurance is an arrangement by which a company undertakes to compensate a person, property, company, or entity for a specific loss. Another word for insurance. Their portfolios attempt to maintain a careful balance between immediate liquidity needs and longer-term investment returns. Insurance companies receive their financial strength ratings from insurance rating organizations that carefully analyze and evaluate a company’s financial performance. 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. Insurance company definition: a company that sells insurance | Meaning, pronunciation, translations and examples 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. There are many insurance companies offering a wide range of insurance options to choose from. An insurance company owned by its policyholders is a mutual insurance company. The company also compensates for illness, damage, or death. 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. It determines whether it would be profitable for an insurance company to take a chance on providing insurance coverage to an individual or business. In addition, many insurance companies offer contractual savings schemes. All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. Define insurance company. Life insurance companies focus on legacy planning and replacing human capital value, health insurers cover medical costs, and property, casualty, or accident insurance is … Notably, also the Financial Services Act has enabled insurance companies to broaden the portfolio of services and financial products they are able to offer. Insurance companies create insurance policies by grouping risks according to their focus. Company Name: Times Internet Limited Registered Office Address: 9-10,Bahardurshah Zafar Marg, New Delhi - 110002 Corporate Identity Number: U74999DL1999PLC135531 How to use insurance in a sentence. 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 definition: 1. an agreement in which you pay a company money and they pay your costs if you have an accident…. 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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. 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). All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. 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. Camp Insurance 101 Present arrangements have a short list of clear winners: the lawyers, (who usually get one third of the victim's winnings), the lucky (those hit by someone rich or well insured and clearly at fault), and the insurance companies (who make money regardless). Insurance refers to a contractual arrangement in which one party, i.e. 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. 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 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. 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. 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. insurance company synonyms, insurance company pronunciation, insurance company translation, English dictionary definition of insurance company. 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. Plural form of insurance company. Notably, the Financial Services Act has also enabled insurance companies to broaden the portfolio of services and financial products they are able to offer. Learn more. A captive insurance company is a form of corporate " self-insurance." Insurance is a device not to avert these risks but to mitigate they’re rigorous on individuals. The insurance company paid out for the stolen jewellery and silver. An insurance company credit rating is the opinion of an independent agency regarding the financial strength of an insurance company. Learn more. See more. Insurance is a means of protection from financial loss. While there are financial benefits of creating a separate entity to provide … 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. Life insurance policies linked to the provision of MORTGAGE finance for house purchase are another innovation. Protecting yourself is not uncommon. Insurance companies use the term coverage to mean the rupee amount of in 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. 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. The term insurance is pretty straightforward. Learn more. Insurance underwriting is the process of evaluating a company's risk in insuring a home, car, driver, or an individual's health or life. 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