According to legend, the Babylonians’ code of Hammurabi, written in 1800BC, had provisions that included elements of insurance in the laws that governed their trade. However, what we have today in the sector, both locally and globally, has evolved from a simple agreement between two people into a global industry. According to the concept, insurance is a situation in which someone covers himself or herself against harm, reduces the consequences of uncertainties, and distributes damage.Learn more by visiting Miller Hanover Insurance
Other explanations owe it to the situation in which an insurance company collects a certain amount of money from someone and agrees to pay a compensation or render services to that person if and when that person suffers the kind of loss specified in the insurance agreement; and from the explanation, this is where an insurance company comes into play because they are the ones who will pay the compensation or render services to that person if and when that person suffers the kind of loss specified in the insurance agreement; and from the explanation, this is where This industry has long been thought to be a way for citizens to mitigate the risk of catastrophic events. As financial intermediaries, they serve as go-betweens for the surplus and deficit units of the economy, ensuring the economy’s overall growth.
One might wonder how insurance firms come up with the funds to compensate their policyholders in the event of a mishap. The response to this question would bring us to a discussion of the different ways insurance companies make money and how their policyholders are paid. The truth is that the money they collect from policyholders (those who have signed a contract with the insurance company) is invested in the form of premiums (a sum of money paid in addition to the normal cost of something. by BBC. Eng. dict) and is invested in Bonds, stocks, mortgages (i.e., houses), and government securities (in our subsequent article, we will explain more of this: Bonds, stocks, mortgages and govt. securities). They make money for themselves and for those who work for them.