Insurance and Risk Management

Insurance is a financial instrument that is meant to guard against monetary loss. It comprises an agreement between a person or organization (the policyholder) and an insurance provider, wherein the policyholder pays recurring premiums in return for the provider's pledge to pay for particular possible losses in the future. Risks like accidents, natural catastrophes, disease, or death can result in these losses. Common insurance policies include health insurance, which pays for medical costs; auto insurance, which covers liabilities and losses linked to vehicles; and life insurance, which pays beneficiaries in the event of the policyholder's death. In the case of unanticipated circumstances, insurance helps people and organizations reduce risk and maintain financial stability and peace of mind.