INSURANCE
Global
insurance premiums grew by 9.7 percent in 2004 to reach $3.3 trillion. This
follows 11.7 percent growth in the previous year. Life insurance premiums grew
by 9.8 percent during the year, thanks to rising demand for annuity and pension
products. Non-life insurance premiums grew by 9.4 percent, as premium rates
increased. Over the past decade, global insurance premiums rose by more than
a half as annual growth fluctuated between 2 percent and 10 percent.Advanced
economies account for the bulk of global insurance. With premium income of $1,217
billion in 2004, North America was the most important region, followed by the
EU (at $1,198 billion) and Japan (at $492 billion). The top four countries accounted
for nearly two-thirds of premiums in 2004. The United States and Japan alone
accounted for a half of world insurance premiums, much higher than their 7 percent
share of the global population. Emerging markets accounted for over 85 percent
of the world’s population but generated only 10 percent of premiums. The
volume of UK insurance business totaled $295 billion in 2004 or 9.1 percent
of global premiums.
Annuities
Provide
a stream of payments and are generally classified as insurance because they
are issued by insurance companies and regulated as insurance and require the
same kinds of actuarial and investment management expertise that life insurance
requires. Annuities and pensions that pay a benefit for life are sometimes
regarded as insurance against the possibility that a retiree will outlive
his or her financial resources. In that sense, they are the complement of
life insurance and, from an underwriting perspective, are the mirror image
of life insurance.
Business Insurance
Business Insurance can be any kind of insurance that protects businesses against
risks. Some principal subtypes of business insurance are (a) the various kinds
of professional liability insurance, also called professional indemnity insurance,
which are discussed below under that name; and (b) the business owners policy
(BOP), which bundles into one policy many of the kinds of coverage that a
business owner needs, in a way analogous to how homeowners insurance bundles
the coverages that a homeowner needs.
Credit
Insurance
Credit insurance repays some or all of a loan back when certain things happen
to the borrower such as unemployment, disability, or death. Mortgage insurance
is a form of credit insurance, although the name credit insurance more often
is used to refer to policies that cover other kinds of debt.
Dental Insurance
Dental Insurance like
medical insurance, is coverage for individuals to protect them against dental
costs. In the U.S., dental insurance is often part of an employer's benefits
package, along with health insurance.
Disability
Insurance
Provide financial support in the event the policyholder is unable to work
because of disabling illness or injury. It provides monthly support to help
pay such obligations as mortgages and credit cards. Total permanent disability
insurance insurance provides benefits when a person is permanently disabled
and can no longer work in their profession, often taken as an adjunct to life
insurance. Disability overhead insurance allows business owners to cover the
overhead expenses of their business while they are unable to work.
Workers' compensation insurance replaces all or part of a worker's wages lost
and accompanying medical expense incurred because of a job-related injury.
Health
Insurance
Health
Insurance policies will often cover the
cost of private medical treatments if the National Health Service in the UK
(NHS) or other publicly-funded health programs do not pay for them. It will
often result in quicker health care where better facilities are available.
Liability Insurance
Liability insurance is a very broad superset that covers legal claims against
the insured. Many types of insurance include an aspect of liability coverage.
For example, a homeowner's insurance policy will normally include liability
coverage which protects the insured in the event of a claim brought by someone
who slips and falls on the property; automobile insurance also includes an
aspect of liability insurance that indemnifies against the harm that a crashing
car can cause to others' lives, health, or property. The protection offered
by a liability insurance policy is twofold: a legal defense in the event of
a lawsuit commenced against the policyholder and indemnification (payment
on behalf of the insured) with respect to a settlement or court verdict. Liability
policies typically cover only the negligence of the insured, and will not
apply to results of willful or intentional acts by the insured.
Life
Insurance
Provides a monetary benefit to a decedent's family or other
designated beneficiary, and may specifically provide for income to an insured
person's family, burial, funeral and other final expenses. Life insurance
policies often allow the option of having the proceeds paid to the beneficiary
either in a lump sum cash payment or an annuity.
Property Insurance
Property insurance provides protection against risks to property such as automobiles,
homes, crops, machineries etc. for fire, theft or weather damage. This includes
specialized forms of insurance such as fire insurance, flood insurance, earthquake
insurance, home insurance, inland marine insurance or boiler insurance.
Travel Insurance
Travel insurance is an insurance cover taken by those who travel abroad, which
covers certain losses such as medical expenses, lost of personal belongings,
travel delay, personal liabilities, etc. Source : Wikipedia