What is Insurance ?

Insurance  is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss

An insurer or the insurance company is a company selling the insurance, the insured or policyholder is the person or entity to purchase an insurance policy. The amount of money charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of assessing and controlling risk, has evolved as a separate field of study and practice

The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in case of financial loss (personal) . The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated