What is Insurance?

What is Insurance?

Policy Brief for the Washington Policy Center
December 01, 2008
Originally published in Washington Policy Center

Full Document Available in PDF

Insurance is a type of financial product that serves to pool, manage and mitigate against unexpected - almost always negative - events that involve damage to property and damage that the owner of property might do to others. It is an effort to transfer contingent risks - risks that nobody knows definitely will happen - from one party (the insured) to another (the insurer) in exchange for a payment.

Related Files: What_is_Insurance.pdf