INSURANCE
Insurance is a system for lowering the loss of the financial risk of distributing the loss of a person or body to the other ..
Insurance is a business agreement between two or more parties, with which the insurer tie themselves to the Insured with insurance premiums, to provide reimbursement to the Insured for any loss, damage or loss of profits or the expected legal responsibility to third parties who may suffer akan Insured, arising from an event that is not certain, or provide a payment based on life or death that someone be.
Agencies that distribute the risk as “Insured”, and accept the risk that the body called the “underwriter”. Agreement between the two bodies is called the policy: this is a legal contract explain each term and condition of the protected. Costs paid by “insured” to the “guarantor” for the risk borne by the “premium”. This is usually determined by the “guarantor” for the funds that can be claimed in the future, administrative costs, and benefits.
For example, a couple buying a house worth Rp. 100 million. Knowing that they will lose their homes to bring them to financial ruin, they take the insurance policy in the form of home ownership. Policy will pay replacement or repair their homes when the disaster occurred. Insurance companies on their premiums as much as Rp1 million per year. The risk of losing the house has been distributed to the owner’s home insurance companies.
The science of using actuaria to calculate the risk that they expected. Science Actuaria use mathematics, particularly statistics and probability, which can be used to estimate the risk for claims in the future with the accuracy that can be relied upon.
For example, many people purchase insurance policies and home ownership and then they pay a premium to the insurance company. When the loss of the protected case, insurer must pay claims. Insured for some, insurance benefits that they receive far more than the money they pay to the insurer. Others may not make a claim. If it is averaged from all policies sold, the total claims paid out is lower than the total premiums paid to the Insured, the difference is the cost and benefits.
Insurance companies also benefit investment. This is obtained from the investment of premiums received until they have to pay a claim. This money is called “float.” Underwriter can benefit or loss from price changes and also float the interest rate or dividend on the float. In the United States, loss of property and deaths recorded by insurance companies is U.S. $ 142.3 billion in the five years ending in 2003. However, total profits in the same period is U.S. $ 68.4 billion, as a result of the float.
Some people consider insurance as a form of betting which is valid for the period of the policy. Insurance companies bet that the property buyer will not be lost when buyer pay the money. Differences in costs paid to the insurance company against the amount they can receive when the accident happened almost the same as if someone bet on horse racing (for example, 10 equal 1). For this reason, several religious groups including the Amish avoid insurance and depend on the support received by their communities when disasters occur. In the community and supports the close relationship in which people can help each other to rebuild the lost property, this plan can work. Most people can not effectively support the system as above, and this system will not work for large risks. (Wikipedia Indonesia)
