History and Principles of Insurance

 In 1680, he founded the first fire insurance company in England to insure brick and frame houses.  In 1752, Benjamin Franklin founded the Philadelphia Fire Insurance Assistance Organization. He refused to insure several buildings in which the risk of fire was too great, for example, 100% wooden buildings.


The loss must be substantial: the De minims legal principle (from Latin: on minimal things) requires that minor problems not be covered. The payment that the policyholder pays to the insurer for risk is called a premium. The possible causes of unforeseen events that may lead to insurance claims are called “haza.

Compensation (Compensation)

Anyone who wants to transfer the risk (a person, company or organization of any kind) becomes the “insured” party, as soon as the “insurer", the insurance side, accepts the risk under an agreement defined as an insurance policy. , This legal agreement establishes the conditions that determine the total amount of insurance coverage (reimbursement), which must be provided by the insurer to the insured person when taking the risk in case of loss, and 100% of the specific covered risks are covered (to be repaid) during the term of the contract.

If the insured has incurred losses on the specified risk, the insurance cover gives the policyholder the opportunity to file an “claim” with the insurer for the amount of damage specified in the policy agreement.

The premium paid currently provides coverage for losses that may arise after several years. In this regard, the financial stability of the insurance company is the most important. In recent years, several insurance companies have been unable to pay, neglecting their insurers without insurance (or insurance simply from a state-supported insurance pool, with lower payments on principles and insurance payments for losses). A number of independent rating agencies, such as Best's, provide facts and assess the financial stability of insurance companies.

Risk assessment

The insurer uses actuarial sciences to quantify the risk that it is prepared to consider. Information is collected to approximate future insurance claims, usually with sufficient accuracy. Actuarial science uses statistics and probability to analyze the risks associated with covering the covered risks, and these scientific principles are used by insurers in combination with other factors to determine the composition of the rate.

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