Who is an Insurer?

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Who is an Insurer? Insurers have existed for thousands of years in various forms. They are essentially those that have the financial means to protect another. Some say the oldest form of insurance was written in the Code of Hammurabi — a set of laws written around 1750 BC that said ship merchants could finance their cargo with lenders (what would be considered insurers today). If the cargo made it to port safely, the merchants paid back the lenders. If the cargo did not make it back because of a shipwreck or accident, then merchants did not have to pay it back. The premiums for this were quite high because the risk of loss was difficult to predict The party to an insurance contract who underwrites an insurance risk and undertakes to provide financial compensation, or responsible for paying claims under a contract of insurance. The insurer is the company that pays out that compensation. They’re the company that designs the insurance policy and sets the terms of the agreement. The word “insurer” is usually interchangeable with “underwriter”. An insurance policy is a promise to reimburse the policyholder for a loss; insurers are responsible for fulfilling that promise. Some tasks that an insurer performs vis -a-vis the client are a) Assesses the risk of your proposed cover. b) Background checks your information. c) Provides a quote based on the information d) Gives detailed information about the policy e) Takes care of coverage and claims after you purchase the policy. What is important is that most at times the risk brought in by the client or insured is shared with another party the reinsurer: Reinsurance companies or reinsurers insure the insurance companies. Reinsurers participate in protecting insurers from the risks which are too large for them to cover individually. Insurers can underwrite more and bigger proposals with the help of reinsurers than otherwise possible for them Most often we confuse about insurers vs. insureds. The insurer is the one doing the insuring; they issue the policy and pay the claims. The insured is the person(s) or institution(s) that the policy is covering; they buy the policy and receive claims compensation. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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