Something about insurance

The essence of insurance is reflected in it. functions. The main risk is a function. First, the risk of potential injury to property interests, is the basis for the existence of insurance and, secondly, in the function of this mode of damage occurs between the insured and the payment of insurance compensation to victims.

The second function of insurance - a warning. Some insurers are insurance premiums for the formation of the funds of precautionary measures aimed at reducing the likelihood of insurance claims and reducing their consequences (eg, the acquisition of the insurer to the policyholder for insurance of fire extinguishers from a fire).

Formation of monetary savings to ensure a certain level of prosperity or improvement is carried out in the third - a savings function of insurance.

The three listed are the main features of insurance. In several works on the theory of insurance is made reference, credit and investment insurance functions. The meaning of the control function is to strictly target the formation and utilization of the insurance fund. Implementation of the control function is performed through the control of the legality of insurance transactions. Repayment insurance premiums in the insurance types of storage pulls together its category credit. The use of temporary free funds of the insurance fund for the receipt of additional income is the investment function.