Insurance the Distribution of Risk

companies. This means it the entire insurance system is in one web.

Integrity of those who are insured against is of prime importance for insurance companies. To fight against inappropriate claims they have a se t of regulations which the insured has to follow. When fire or a theft takes place the insurance company has to be informed immediately. The police have to be alerted. Once the police investigations are over a police report has to be obtained. All these regulations are only for the low premium groups. There are some insurance companies both home owner’s property insurance companies and business property insurance companies which charge a higher premium and give exemption to these rules in some countries.

What ever the insurance scheme is finally it is distribution of risk or pooling of risk.

Retrieved from “http://www.articlesbase.com/finance-articles/insurance-the-distribution-of-risk-1637863.html”

(ArticlesBase SC #1637863)

Liked this article? Click here to publish it on your website or blog, it’s free and easy!

Thomas