What is insurance market

An insurance market simply means the buying and selling of insurance and includes the entities involved in the process as well as customers. Insurance companies sell contracts that provide risk management to buyers.

What is the role of the insurance market?

Insurers spread the costs of risk events across time and the population, helping to reduce the impact of major risk events on the wider economy. This enables individuals and firms to take on and manage risk, thereby encouraging investment and innovation, and helping to underpin economic activity.

What is a insurance in simple words?

Insurance is a legal agreement between two parties – the insurer and the insured, also known as insurance coverage or insurance policy. The insurer provides financial coverage for the losses of the insured that s/he may bear under certain circumstances.

Why insurance market is regulated?

Insurance regulation is necessary to maintain the solvency of insurers. Solvency is important for several reasons. First, premiums are paid in advance, but the period of protection extends into the future.