The principle of insurance is based on the concept of risk, that is, exposure to a potential hazard, inherent in a situation or an activity and the financial consequences of which cannot be related to property or persons. Danger is the prelude to risk which is itself the prelude to the accident. Thus, the danger having been identified, the risk becomes perfectly descriptive, it is likely to occur but it is not known if it will be occur and when it will occur.
Insurance is a contract: in return for the payment of a contribution, also known as a premium, the insurer guarantees specific benefits to an individual, an association or a company in the event of a risk clearly identified in the contract. The concept of risk is a key concept in insurance, it is a random event feared by an insured for its financial consequences. The hazard is based on three criteria:
- The future: one cannot insure a car accident that has already occurred;
- The uncertainty: a certain risk cannot be assured that will be occur at a known date;
- Involuntary: the insured cannot be insured for events that he caused voluntarily. There are two main categories of insurance: General Insurances and Life and Health Insurance. General insurance covers both liability insurance (family liability, driver’s liability, professional liability, etc.) and property and casualty insurance
The traditional vocation of insurance is to allow the replacement of destroyed or stolen goods. Today, liability insurance in the fields of domestic life, professional activity, traffic and leisure has grown considerably. In this case, we will insure ourselves against damage and possible harm caused unintentionally to third parties.
Property insurance and liability insurance are intended to protect the insured’s assets. They are, for some grouped in “multi-risk” contracts (multi-hazard house, multi-risk company …). The most common property insurances are fire insurance, theft insurance, water damage but other types of events are automatically integrated (natural disasters, attacks, etc.) or offered as an option .
Personal insurance covers the risks inherent in human life and offers a complete set of solutions adapted to each situation. Some contracts provide benefits in the event of damage to their physical integrity, such as death, disability … (death insurance, health insurance, etc.), others allow the creation of savings and the payment of Annuity or capital if the insured person is alive at the end of the contract (life insurance). They offer a complete set of solutions tailored to each situation.