An insurer , also referred to in some quarters as company insurance can be a person physical or a company that deals with the assurance risk to third parties, ie, its main activity is to protect those material goods of certain risks that are exposed .
The aforementioned work will be agreed and established in the so-called insurance contract , which is an agreement from which the insurer, in this case the insurance company or insurer, undertakes to compensate for damage or to pay a sum of money agreed in a timely manner. to the other party, called the policyholder. For such benefit, the policyholder is obliged to pay the insurer a value and then, in exchange, the insurer will provide the appropriate coverage.
The primary mission of the contract is to economically protect goods or individuals that are plausible of suffering some damage in the future, while with the conclusion of the contract, coverage is guaranteed against any eventuality that occurs and also the policyholder is freed from having to, for example face a lawsuit for financial damages that involves a really onerous sum of money. This contractual relationship with the insurer ensures that you are protected in exchange for a defined fee or premium.
Both the conditions of the contract and the obligations and rights arising from the same appear dumps and specified in a document that is popularly known as policy insurance .
It turns out to be a sine quanom condition that the insurer always has a considerable margin of solvency to meet the commitments contracted with the policyholders, if the need to intervene arises . Thus, the special reserves, which are those with which they deal with harmful events, are invested by the insurer in real estate, titles or securities , among other resources .
It should be noted that together with the banking and securities markets, insurance companies constitute the pillars of a financial market.