Insurance today called for the protection of the interests of the relationship of legal and natural persons in relation to property in the event of insurance claims.Economic essence and functions of insurance due to the fact that this type of activity, which is directly linked to the distribution of the risk of damage among the insured and the insurer.
insurers - a specialized companies that provide the accumulation of insurance contributions and payments when applying certain damage to property interests.Insurers - are, respectively, those who insure their property interests.
Like any other activity, insurance plays a role in the economy, it has the functions of insurance and is based on certain principles.
Its role is that it ensures continuity and continuity of social reproduction.This is reflected in the performance, which in turn are expressed in:
- ensuring economic and social stability through the timely and full compensation for losses;
- participation free cash fund of the insurance company in the investment activities of the various insurance organizations;
- performance indicators held insurance operations.Insurance
different specific features that characterize it as a category of the economy.These principles include the following:
- the redistribution of property damage over time;
- the existence of insurance risk (see. The function of insurance - risk-taking function);
- repayment of insurance payments in the form of insurance payments;
- meeting the needs of citizens in the cover possible damage to property.
economic essence of insurance activities consistent with the function of insurance, which express its social purpose.Among the main functions - risky, preventive, savings and control.
main functions performed by insurance, is considered to be risky, as this activity is not possible without the presence of risk.It is he who determines the existence and further development of insurance.Thus, it is within the limits of the risk function has the redistribution of cost among all participants as a result of the accident insurance accidental insurance claims.It is important that it is the variety of risks and leads to the development of insurance in general, the emergence of new industries and its subspecies.
security functions are also presented warning that the financing is realized at the expense of a certain amount of the insurance fund local activities to reduce or eliminate the degree of insurance risks, and as a result of damage caused by these risks.In insurance such events are called proactive.
following function - savings.It means saving money through insurance on survival.This kind of activity is connected with the need to insure the people reached by the social situation and the level of prosperity.
Finally, the control function is the timely provision of the target formation and use of money from the insurance fund, which in turn is based on the law governing the insurance business as a whole.This function is carried out through the control of the legality of certain insurance operations by insurance companies.
In addition to these, there are other functions that are dependent on each specific type of insurance activity.For example, the function of social insurance.
