Roles of insurance

Roles of insurance

The purpose of insurance is to protect heritage and people, but also plays an important role in the economy:

    By reliaping commercial relations
    By playing an important role of investor of the national economy
    By promoting investment

Insurance also plays a social role. The benefits paid to the insured persons and the beneficiaries of the contracts allow them:

    to maintain their income
    to reconstitute their heritage
    not to be borne by the public community for victims of accidents
    to save jobs, skills
    to preserve the economic fabric.

Life insurance

On the individual level, life insurance has a security function in the sense that it guarantees people against the risks of death. In case of death, for example, the insurer will pay a capital mentioned in the contract to the designated beneficiary. On the other hand, it can also allow the insured to constitute a capital or annuity in an insurance in case of life; She then plays a savings function. Another characteristic of life insurance is that it can constitute for the insurance policy a credit instrument by the possibility of obtaining the insurer.
Reinsurance

Little known to the general public, reinsurance is a sector of the economy indispensable for insurance activity. In addition, it constitutes a leading instrument for any organization concerned with the good management of its risks. Although used in all sectors of insurance activity, it remains strongly oriented towards non-life insurance.

Reinsurance is a mechanism for transferring in whole or in part the risk accepted by an insurer to a reinsurer in order to limit its commitments. As such, reinsurance is familiarly qualified as second degree insurance as it consists of a real insurance insurance. As a result, it represents one of the most unknown industries of the public because of a lack of direct relationship between reinsurers and insured. Unlike insurance companies, the exercise of their duties is located at a regional, provincial or national level, reinsurance is essentially international. Thus, the reinsurer generally accepting low frequency risks but at a high potential cost can improve the pooling of its risks by distributing them on a global scale. This geographical pooling can even lead, for example, to the coverage of European storms, earthquakes in Japan and hurricanes in the United States within a single reinsurance treaty.