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What are the objectives of the Insurance Companies?
Insurance companies:
The main objective of insurance companies is to prevent individuals and firms (termed as policy-holders) by adverse events. These companies receive premiums by policy-holders, and promise to pay compensation to policy-holders when particular events happen. There are two primary segments into the industry: at on the one hand life insurance, and causality and property insurance onto the other.
In 2006 year in the US, life insurance companies were the largest group in between the contractual savings institutions along with aggregate assets of 4.71 trillion dollar as reported by the Insurance Information Institute. Remember that traditional life insurance is no longer the main business of several companies into the life/health insurance industry. Nowadays, the emphasis has moved to the underwriting of annuities. These annuities are contracts that accumulate funds and/or pay out a fixed or variable income stream that can be for a fixed period of time or over the lifetimes of the contract holder and her or his beneficiaries.
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