Insurance companies offer protection against unforeseen events from "summary" of Financial Markets and Institutions, Global Edition by Frederic S. Mishkin,Stanley G. Eakins
Insurance companies play a vital role in the financial markets by providing protection against unforeseen events. This protection comes in the form of insurance policies that individuals and businesses purchase to safeguard themselves against potential risks. These risks could include natural disasters, accidents, illnesses, or other unexpected events that could cause financial hardship. When individuals or businesses purchase insurance policies, they are essentially transferring the risk of these unforeseen events to the insurance company. In return for a premium, the insurance company agrees to cover the costs associated with the event should it occur. This provides peace of mind to policyholders, knowing that they will be financially protected in the event of a lo...
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