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As an academic field of study, insurance involved the analysis of risk, risk management practices.
It also involves the study of the various types of insurance, such as health, life, liability, motor.
Insurance also studies the principles and practices involved in underwriting and managing risks.
The field of Insurance also study’s the various institutional and legal frameworks that guide insurance practice in various countries.
An insurance contract is a legally binding agreement between the insurer and the insured in which the insurer agrees to indemnify the insured against certain risks, in exchange for the premium that will be paid by the insured.
For an insurance contract to be legally binding, it is important that the insurance contract has six basic elements, namely; offer, acceptance, consideration, capacity to contract, the legality of subject matter, and insurable interest.
An insurable risk, as its name would seem to suggest, is any risk that can be covered by an insurance policy.
A risk must satisfy a number of requirements in order to be considered an insurable risk, including being fortuitous, non-catastrophic, and measurable.
Insurance is a form of risk transfer mechanism where the insurer agrees to indemnify the insured against a specified or known risk.
It is a contract between two parties in which one party, the insurer, agrees to provide financial protection or compensation for the losses incurred by the other party, the insured, in exchange for regular payments known as premiums.
Risk can be defined as the possibility of the occurrence of an unfortunate situation.
It is the uncertainty as to the occurrence of an economic loss.
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