Insurance companies
People resort to insurance companies to take advantage of the amount provided by these companies as compensation for some of the risks they are exposed to, such as burning their homes, or being robbed, or in cases of illness, disability, etc., and these companies are the most important economic sectors in these days, That the subject of the article revolves around insurance, we must define it clearly, where the insurance is linguistically defined as security, reassurance, and the disappearance of fear, the legal definition of it is summarized as a contract under which the insured to compensate the losses suffered by the insured, The insurance companies have emerged; to achieve the desired goal of insurance for people, they are defined as commercial companies that receive amounts from subscribers with them, either directly, as some life insurance cases, or indirectly, through Paying the premium, and in turn invests these funds, like the idea of commercial banks, which have a dual role. They receive money, invest it and pay it to the participants in case of danger.
The ancient Egyptians were paying a social sum to secure the cost of burying them, as the Arabs used to co-operate; to provide insurance for those who were lost during their commercial trips, and by the beginning of the century The insurance began to take the form of gambling and betting; they would conclude the so-called (offshore loan contract), which includes a sum of money taken by the owner of the ship, if returned properly returned to the owner of the benefits of high, but the idea of insurance changed at the beginning of the 14th century, Built Li idea of cooperation rather than gambling.
Types of Insurance Companies
Insurance companies are generally classified as financial institutions and are classified into two main categories: insurance companies according to the range of insurance activities and according to the legal form .
According to insurance activities
The companies carry out insurance on various aspects of life, and each company specializes in the quality of these insurance activities, which can be classified into 4 types, namely:
- Life insurance companies:
These companies are interested in providing insurance for the participant in relation to his life, or his death, and some of these types, called insurance companies mixed.
- General insurance companies:
These companies are responsible for insurance on the property of the subscriber, providing him with compensation in cases of fire and theft, and provide insurance on all types of transport, in addition to providing insurance on the civil liability of participants against others, such as cases of car accidents.
- Social security funds:
These companies are concerned with the therapeutic aspects of the participant. The participant when he needs treatment, he pays a small amount, and the insurance company to pay the remaining treatment costs.
- Comprehensive companies:
These companies insure life, death, property insurance, transportation, third parties and treatment. These companies are comprehensive of the previous three types of insurance companies.
According to the legal form
Insurance companies are classified according to the legal form into two types :
Joint Stock Companies:
These companies are formed by the shareholders and belong to them, benefiting from the profits achieved by the company, and they assign a board of directors to take over the affairs of the company and conduct its affairs.
Fund Companies:
These companies differ from their predecessors by being huge and free of shares. Companies are owned by insurance policyholders and are assigned to a team of management experts.
Principles of insurance companies :
Insurance companies follow a set of principles they are committed to while providing customer service to maintain customers and attract other customers. Some of these principles guarantee no loss to insurers. The principles system is based on technical, legal and objective principles; These principles are :
Principle of good faith:
This principle is intended to give the company and the client all the essential facts, and not to make misleading facts, and the most important facts that may increase the risk, which should be disclosed as follows :
- Comprehensive description of what to insure.
- Show any documents that provide insurance against the same risk.
- Provide details of previous loss and claims.
- Clarify the customer's behavior, or any facts that may expose the insured person to a higher risk than the normal range.
Principle of insurance interest:
The insured person is subject to the financial loss at the time of the damage to the insured thing, and the insured is subject to the principle of insurance interest if it is owned by the customer, insured or rented to the customer.
Principle of compensation:
The principle of compensation shall be based on the idea of returning the insured after losing it to its previous financial condition. To achieve this, the customer must determine the actual value lost after the loss. The compensation can be provided to the customer in several ways :
Cash payment by the company to the customer, the most convenient way often.
- Repair of damaged parts at their own expense; some companies own their own repair workshops, as well as workers, and may have financial interest in repair workshops, helping to control the costs required for repairs.
- Replacement of damaged, irrecoverable, or lost pieces, enabling the company to benefit from discounts.
- Restoring buildings, machinery to the previous position by the company, as building the damaged building new, which is called (reparation).
Principle of solutions:
The principle of solutions is based on the provision of compensation to the customer when he is harmed by another person. The company then replaces the customer in the claim from the other person who caused the damage by providing the necessary compensation. This principle is applied in case of breach of trust, theft, fire or Insurance, and income insurance.
Principle of participation in compensation:
The right of the insurance company to claim the other insurance companies to participate in the payment of the necessary compensation; this principle applies if the customer has participated in more than one insurance company on the same thing as insurance.
Principle of direct cause:
The cause of loss must be determined when it occurs; loss may be the result of more than one reason, since the knowledge of the direct cause of loss determines whether there is compensation for the insured.
The insurance process
The insurance process includes the conclusion of a contract under which the insurance company is required to cover all losses resulting from the risks to which the insured may be exposed, in return for an amount called installment or subscription, where he pays the insurance company. The insurance process is only available with several pillars. as follows :
Consent:
Achieving mutual agreement between the parties is the expression of both parties of their will in the contract, where the two wills are identical, and requires to achieve consensual availability of eligibility, and lack of defects of will.
Insurance parties:
This is done by identifying the parties to the contract: the insurer is represented by the insurance company, the insured is the beneficiary and the eligibility should be achieved by providing the following:
- Ensure that the person is legally fit; that is, he has rights, duties in law.
- Ensure that a person is capable of discrimination; that is, he has the power to exercise his rights.
- Ensure that the person is not disqualified if he or she is a child, a madman or a minor.
- Ensure satisfaction without coercion, or exploitation.
Contract:
That is, the contract should be in relation to a legitimate order, and the order on it should be clear and known to both parties.
Contract reason:
This shall be by determining the direct purpose to which the obligor intends to reach.
Compensation :
This is because the contract will be legally enforceable only if there is something of value that the parties offer to each other, either by limiting the amount of money, goods, services or promises.
The contract contains a set of key elements, namely
Person wishing to insure:
In the presence of the fact that he or she may be exposed to the threat to his or her property, health or otherwise.
Insurance Institution:
It is the company that is used by the person who wishes to obtain the insurance and receives it from the insurance company for payment of a certain amount of money. This company compensates him for the money he receives as a premium from the insured, as stipulated in the insurance contract. .
Insurance protection:
Is the protection that the insured obtains when he is exposed to the accident, or the order that he has determined upon his request for insurance.
Compensation:
Customer's access to insurance when the risk or loss occurs in any appropriate manner for compensation
Giant insurance companies :
| Company Name | Market Capitalization |
| Berkshire Hathaway (BRK.A) | $308 billion |
| China Life Insurance(LFC) | $80 billion |
| Allianz (AZSEY) | $76.8 billion |
| American International Group (AIG) | $72.3 billion |
| Ping An of China (PNGAY) | $65.6 billion |
| MetLife (MET) | $59.4 billion |
| AXA ( AXA) | $57.8 billion |
| AIA Group Hong Kong (AAIGF) | $54.4 billion |
| ING Groep (ING) | $54.4 billion |
| Zurich Insurance (ZURVY) | $45.4 Billion |
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