THE BEGINNING OF THE INSURANCE

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Insurance was started by the Chinese traders as early as the 3rd millennia BC. Insurance is the part transfer of risk of Loss from one entity to another. Insurance is a kind of risk management techniques basically used as a hedge against the risk of an uncertain loss. An insurer is the company selling the insurance policy and willing to take the risk of the other party who buys the policy and the party taking or buying the policy is called as the Insured. The amount of money which is paid by the insured for specific insurance coverage is called as Premium. The amount of Premium to be paid is dependent on the Value of the insurance Policy.



The insurance policy is actually a contract which is received by the insured which contains the terms and conditions in details and also the circumstances in which the insured will be compensated in the event of the loss. The insurance company collects funds from a number of insured entities to pay for the losses that may occur. The insured entities are protected from risk for a fee which is nominal when compared to the amount of the policy. The fee is dependent on the frequency of the event occurring and sometimes also on the severity of the event occurring.

An Insurable risk is the one which meets certain conditions. An Insurance company is a commercial  Enterprise  and a major part of the financial services Industry. The Insurance business has grown leaps and bounds from the time it was first started and The pace at which the industry is growing,and the type of policies which are issued, is astonishing. The insurance Business has now become very complicated and various regulatory agencies have come into the picture because of its rapid growth.

The Most popular insurances are

1. Home insurance 
2. Travel Insurance
3. car insurance
4. Health Insurance
5. Life Insurance.