Insurance
From Open Risk Manual
Definition
Insurance is a form of Risk Mitigation whereby certain types of Risk can be covered by suitable insurance policies, thereby reducing the impact of a Risk Event, especially in monetary terms.
A contract to finance the cost of risk. Should a named risk event (loss) occur, the insurance contract will pay the holder the contractual amount.
Entities providing insurance are known as insurers, insurance companies, insurance carriers or underwriters and they constitute the Insurance Industry, which is typically considered as part of the broader Financial Service industry.
