A truly global market

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Introduction – What is insurance? Life is full of risks. Insurance can provide security against some of these risks. For example, motor insurance provides cover for certain costs resulting from a road accident or the theft of a car. A contract of insurance involves the insured making a payment, (a premium) to an insurer. In return for the premium the insurer agrees to provide the insured with cover for certain types of losses arising from specified events. For example, a policy of household insurance might provide cover for damage to a house in the event of a fire. Insurance and the UK economy All businesses are exposed to risks in their day to day operations. Without insurance cover to provide protection against some of these risks, businesses would find it difficult to operate efficiently and profitably. Therefore, insurance is a vital part of most developed economies. Insurance and pension funds account for 1.4%* of the UK’s total Gross Domestic Product (GDP). Insurance also accounts for £3.8 billion* of export sales. Businesses sometimes insure tangible assets like fleets of cars, machines and buildings, in the same way as homeowners insure their houses and contents such as televisions, videos, etc. Businesses can…

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