With the evolution of commodity-money relations, people are increasingly in need of protection of their interests and property from possible contingencies, whether natural disasters or banal failure by the other party of the contract with certain obligations.The economic essence of insurance is defined so as to protect the subjects against possible losses in case of occurrence of the situation to compensate for their losses.
insurance market - the major component of the financial market, which is bought and sold insurance.
In order to fully understand the essence of insurance, you must familiarize yourself with the main subjects:
- the insurer - a legal entity that has received a license for insurance activities.These companies may not engage in commodity-brokerage, manufacturing, and banking transactions;
- the policyholder - a legal or a capable person who, by virtue of the laws of the Russian Federation has the right to be a party of the insurance contract, the insurance benefits may be assigned to a third party.After signing the contract insurers issued a policy that certifies their right to this service;
- Insurance Agent - nat.or legal.the person who represents the interests of the insurer, speaking on his behalf.For this company are paid in the form of commissions;
- insurance broker - a natural or legal person who acts as an intermediary with respect to insurance, but on its behalf.He explores the market conditions, competitive conditions, and develops for its clients the best insurance program.
economic essence of insurance is also reflected in the specific grounds on which this area of activity is different from the others:
- There is the risk of the insured event, as a result of that harm, then he is compensated.
- need for individuals and legal entities in that future damage was covered, only satisfied the service, which also reflects the essence of insurance.
- damage is distributed in time.
- All collected mobilized in insurance fund cash resources (premiums) are returned in the form of insurance payments.
In addition, the economic essence of insurance is revealed by specific functions.Accepted provide risky, preventive, savings and control functions.
The risk function contributes to a redistribution of funds between the parties to the cost of insurance is associated with the onset of the insured event.That is a large number of risks led to the development of many branches and sub-branches of insurance.
warning stems from the fact that part of the funds received from contributions directed at the prevention of insurance risk, its reduction or elimination.
Savings feature is based on how to protect the citizens who have reached a particular social status and wealth, from possible unforeseen insurance risks.
Finally, the monitoring function requires strict monitoring of how the funds are spent target money insurance funds.
Thus, we examined what constitutes the nature and function of insurance.It remains to highlight another important issue.
insurance funds - a key concept of security - that's all the money generated by premiums, which are in the operational management of the insurer.These include the concept of the state reserve fund (centralized State insurance fund);of the insurer;reserve fund of enterprise structures, formed in the process of self-insurance.
So we figured, what the economic essence of insurance and considered the distinctive features.Also described are the main actors - the policyholders, insurers, brokers and agents.It can be concluded that the nature and function of insurance is directly related: the function derived from the essence of insurance and its purpose.
