Types of insurance companies
Types of insurance companies in Indonesia:
Some insurers come in several types: loss insurance, life insurance, and reinsurer insurance.
1. Loss insurance company
Loss insurance companies are those that provide a service to risk management of losses, losses, and legal responsibilities to third parties, resulting in uncertain events.
2. Life insurance company
The life insurance company is that it provides services in risk countermeasures associated with the life or death of the enhanced.
3. Reinsurer enterprises
The reinsurer is an enterprise that provides services in reinvestment to the risks faced by loss insurance companies and/or life insurance companies.
The 7 roles of insurance companies:
Insurance does not work if no agency offers it or becomes a party at risk. Well, this is the role of an insurance company that probably isn't for everyone.
1. Risk transfer
The risk transfer was a major function of the insurance company. With this function, the insurance company runs the risk displacement mechanism. With this mechanism of risk transfer, a company can gain certain certainty of its actual loss.
2. Creation of common pool:
With this function, the insurance company will receive a premium of a large amount at the cost of the same risk. Thus the insurance company must form a collection of funds to ensure the same type of risk.
3. Equitable premiums:
Insurance companies should ensure that the premiums that are paid are cared for according to the degree of risk involved. Overcrowding a premium can cause insurance companies to lose their business by choosing a rival company, whereas too few premiums can prevent them from getting sufficient funds to make a claim payment.
4. Reduction of loss:
Insurance companies act to assist economic growth through efforts made to minimize risk, lower cost rates or limit costs.
In order to minimize the risks involved, insurance companies will carry out surveys and studies on guaranteed risks, mapping risk by the cost of the cost, educating on liability precautions, putting on risk management, and so on.
5. Assistance to business enterprise:
Insurance serves to support business growth and growth by providing insurance against risk risks incurred by investors and hedge funds. In other words, by purchasing insurance, investors ina business do not have to worry about the possibility of losing investments ina disaster and for business managers, by paying relatively small insurance premiums, should not reserve relatively large amounts of funds for the risk of loss they may experience.
