7 Characteristics of insurance companies

Insurance companies are older than you can imagine, in fact their creation dates back to the Ancient Age since they sought to protect the personal interests and interests of existing communities, but what is their profile like today?

First of all, we must define them; Insurers are companies that specialize in insurance, whose economic activity is based on offering a security service, covering certain economic risks (which are insurable), the economic units of production and consumption.

Know the 7 characteristics of insurers

1.- Its activity is focused on an operation to accumulate wealth through the contribution of the insured and thus guarantee financial support in the event of an unfavorable economic event.

2.- Follow the principle of mutuality, seeking solidarity between a group subject to risks, that is, creating a heritage that copes with risks.
The unfavorable effect of the risks considered as a whole is diminished because for the insurer the individual risks are compensated since there are few insured who suffer it, compared to the many who contribute to the payment of coverage.

3.- Insurance companies can be of different types depending on their legal constitution: mutual companies, corporations, cooperatives and social security mutuals. Furthermore, all of them share the essential characteristics for marketing insurance.

4.- They can operate in one or multiple branches (automobile, accidents, fires, civil liability, among others), as long as they comply with the necessary authorization from the regulatory body.

5.- They must have sufficient financial resources and solvency, so the legislation imposes many restrictions on them.

6.- The activity of insurers cannot be carried out by natural persons, since legal regulations seek permanence and stability in this sector.

7.- They are constantly regulated by the State to allow the highest level of trust to be reflected between the insured and investors, therefore they are under his protection and vigilance.

Protecting our assets and being financially supported in the face of some unfortunate event is a benefit that we can all count on and that is also necessary as we obtain insurable assets.

Insurance companies have a long history of their work and although they have not changed much since their inception, nowadays and thanks to the appearance of new technologies they have evaluated possibilities of change to innovate and satisfy their clients and new future clients.

At LISA we love to innovate and for this we have decided to be the perfect ally to accompany insurers in the independence of their processes in order to create a different and unique impact. If you need to know more, contact us by clicking here.

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