Describe the role of insurance companies, Finance Basics

Describe the role of insurance companies.

Role of Insurance Companies:

The main objective of insurance companies is to prevent individuals and firms (termed as policy-holders) by adverse events. All insurance companies entertain premiums by policy-holders, and promise to pay compensation to policy-holders when particular events happen. There are two main segments into the industry: life insurance conversely, and property and causality insurance onto the other.

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