Insurance Terminology , Insurance Industry

Comprehensive guide on insurance providing information on insurance and liability, insurance terminology, different types of insurance, insurance industry, companies and agents, quotes and discounts, insurance benefit plans and services, insurers and claims management, and much more.
Insurance Definition and Terminology

Insurance can be defined an assurance of a compensation for specific losses in the future, against a set of payments called insurance premiums. Insurance, regardless of the specific type, is an essential economic tool meant to reduce financial risks and to ensure that financial losses are kept to a minimum. Insurance policies are the contract agreements done between the insurance companies and the insured subject. Below you'll find glossary of insurance terms where you can know more about insurance terminology and different types of insurance.

Insurance Industry
Insurance as a business originated with the great civilizations of mankind, when merchants would ship orders in several sea-faring vessels with the hope of minimizing losses in the event of a shipwreck. Then it was thought of only in the aftermath of great tragedy, as in the 1666 fire in London. Extraordinary disasters, such as London's Great Fire, gave birth to some insurance types such as property, casualty, and fire insurance. Insurance became popular in the middle of the 19th century, only two hundred years after its small beginning in England.

Since then the industry has become much more complex and benefits more valuable. However, the obvious benefit of insurance is still based on the basic principle that losses should be kept to a minimum. Modern insurance entails payments to an insurance company in exchange for the promise to pay for damages, health procedures, etc. in the event of an accident or basic need. In today’s culture, insurance coverage is considered a necessity. Its presence in a 21st century industry is proven by the massive intake of yearly premiums totaling sums in the billions, and its holdings valued in the trillions.