Insurance companies are older than you can imagine; 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, we must define them. Insurance companies are organizations that provide financial protection against potential losses, such as accidents, illnesses, or property damage. They do this by selling insurance policies to individuals and businesses, which provide a specified amount of coverage in the event of a loss. Insurance companies make money by collecting premiums from policyholders, and by investing those premiums in various financial instruments.
Know the 7 keys of insurers
1.- Its activity is focused on an operation to accumulate wealth through the insured’s contribution and thus guarantee financial support in an adverse economic event.
2.- The principle of solidarity in insurance refers to the idea that the insurance risks of a group of individuals or entities are shared among all group members, regardless of their individual risk profile. The principle of solidarity is an important aspect of insurance systems as it ensures that all members of the group have access to protection, regardless of their individual circumstances, and it also helps to spread the risk across the group, which can make insurance more affordable for everyone
3.- Insurance companies can be of different types depending on their legal constitution: mutual companies, corporations, cooperatives, and social security mutuals.
4.- They can operate in one or multiple branches as long as they comply with the necessary authorization from the regulatory authority. Some of them are:
- Life insurance: provides financial protection for the policyholder’s beneficiaries in the event of the policyholder’s death.
- Health insurance: provides financial protection for medical expenses, including doctor visits, hospital stays, and prescription drugs.
- Property and casualty insurance: provides financial protection for damage or loss of property, such as homes, cars, and businesses. This includes liability insurance, which covers third-party claims for damages.
- Auto insurance: provides financial protection for damage to or loss of vehicles, as well as liability coverage for injuries or damage that the policyholder may cause to other people or their property while operating a vehicle.
5.- They must have sufficient financial resources and solvency, so the legislation imposes many restrictions on them.
6.- Natural persons cannot carry out the activity since legal regulations seek permanence and stability in this sector.
7.- They are constantly regulated to allow the highest level of trust to be reflected between the insured and investors.
Needed transformation
Insurance companies have a long history. Although they have not changed much since their creation, nowadays, thanks to new technologies, they are starting to understand the importance of transforming and innovating.
At LISA we want to support insurance companies in this journey, using cutting edge technology to improve their operations. If you want to know more about how we are helping carriers worldwide deliver a better, faster and simpler claims experience, contact us by clicking here.