The Insurance Industry Helps Not Be Measured Essay

1122 Words Feb 26th, 2015 5 Pages
Superheroes like Batman, Spiderman, and Captain America are characterized by American’s to save people from catastrophic loss. From burning buildings to a car accident, citizens’ necessity for protection is always an important part of their life. Much like superheroes, insurance companies can protect you from loss by covering your assets. Insurance carriers around the world provide service to policyholders, guaranteeing coverage to both businesses and homeowners. In order for a company or family to be insured there must be a viable risk in order to provide service. These elements incorporate a large number of insureds, no counterfeits, accidental loss, financial burden, affordable and calculable insurance, no catastrophes, and pure risk only (Property and Casualty Principles 22-29). Risk is the possibility of loss that cannot be measured (15). There are several types of risk, including business, market, credit, operational, and legal risk (Heil and Hillstrom 766). The insurance industry tries to prevent loss by minimizing risk. Insurance workers minimize risk in a number of ways; for example, ordering inspections, requesting photos from agents, and ordering loss runs, or a receipt of claims, from previous insurance companies that a family or business had.
The four main branches of insurance (property, casualty, health, and life), also known as “lines”, are constructed to handle a broad category of risk (Property-Casualty Principles 36). Within those branches are many types…

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