Different types of premiums
Insurance companies transfer the risk on to themselves in exchange for a fixed amount charged from its clients called Premium. Just like sales in a retail company is of paramount importance, premiums are the only way Insurance firms make money. In order for an insurance company to be profitable, the premium collected must be more than the claims it might be giving out. Hence the premium rate is calculated based on extensive research and analysis. However, there are many different ways that an insurance company calculates its profits from the premium. The most commonly […]
Property/casualty insurance can be countermined into two major categories: commercial lines and personal lines. Personal lines, as the term suggests, includes coverages for individuals- vehicles and household insurance. Commercial lines, that accounts for almost half of U.S. property/casualty insurance premium, includes the many kinds of insurance products designed for businesses.
Commercial and business insurance performs a vital role in the world economy. Without it, the economy would not function properly. Insurers primarily protect the economic system from failure by considering the risks intrinsic in the production of goods and services.
In the US itself […]