What is a Insurance about?

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as an equitable transfer of risk of a loss of one company to another, in exchange for a premium, and can be seen as a guaranteed small loss to prevent a large, potentially devastating losses. An insurer is a company that sells insurance, insured or policyholder is the natural or legal person who buys insurance. The insurance is a factor for determining costs for a number of insurers, the so-called "premium". Risk management practices, assess and control risks, has established itself as a discrete field of study and practice.