Insurance
Insurance is a relationship to protect the property interests of individuals and legal entities when certain events (insurance events) occur at the expense of monetary funds formed from the insurance premiums (insurance premiums) paid by them.
The legal basis for insurance is the Civil Code of the Russian Federation, Law of the Russian Federation No. 4015-I of November 27, 1992 "On the Organization of Insurance in the Russian Federation" (as amended on December 31, 1997, November 20, 1999, March 21, April 25, 2002 ., 8, December 10, 2003, June 21, July 20, 2004) and other normative documents.
An insurance product is an insurance action. His certificate, certifying that such an action has occurred, is an insurance policy.
Insurance is a system for protecting material interests. The fact that material interests require protection is associated with the probability of threat to their existence. For each individual owner, it (the threat) is small, but in general, according to the law of large numbers, it is real enough. Hence the objective need for insurance of material risks, in connection with which there is a concept - an insurance product, which must always be present in the financial market. Each insurance product is correlated with a particular insurance object (insured), determines the reasons for insurance (insurance risk), its value (insurance amount), price (insurance tariff), conditions for cash payments (insurance payments) in anticipation of those events from which the insurance is made insurance. The certificate (certificate) of the insurance product is a document called an insurance policy. The policy confirms the fact of the concluded insurance contract (purchase and sale of insurance product), which is always subject, addressed to the participants of insurance, contains the main quantitative parameters of the transaction, is a legal document.
The insurance contract is a contract for the purchase and sale of an insurance product.
Insurance premium is always less than the sum insured.
The specificity of the insurance product is that the insurance premium is always less than the insured amount. This ratio ensures the market attractiveness of insurance products and the corresponding demand for them. But at first glance, the disadvantageous ratio for the seller does not mean its loss, since the number of policies (and, consequently, buyers) is usually greater than the insurance cases.
The insurer does not bear losses, since the number of policies is usually greater than the insurance cases (except for force majeure).
Initially, the financial obligations of the insured and the insurer are equated to each other. But according to the law of large numbers, the financial obligations of the insurer are always lower than the sum of the prices of the sold insurance policies. To resolve this contradiction, it is possible, having established certain relations between the payments of insurers and the insurer, arising from the purchase and sale of the insurance product, i.e., determining the price of the insurance product (tariff).
The dynamics of insurance events is uneven, which violates the requirement of balance equality of financial obligations of policyholders and the insurer.
To determine the insurance rate, the net rate is initially determined, which theoretically preserves the equality of financial liabilities of insurers and insurers with zero result for participants. The gross rate is then calculated that exceeds the net rate by an amount sufficient to fulfill the obligations of the insurer that are not directly related to the performance of the insurance indemnity obligations.
The level of the insurance rate should be low enough to ensure the sale of the insurance product, but also high enough to cover the costs of the insurer and provide it with profit.
The contradiction between the unevenness of the occurrence of insurance events and the need to calculate the average value of the insurance tariff is decided by differentiating the prices of the insurance product by the categories of its customers, taking into account their individual risks.
The need to sell the insurance product forces the insurer to improve insurance products, lower prices for them. The need to make profit, on the contrary, requires higher prices. Hence, the insurance market is regulated by the demand and supply for insurance products.
In the procedure of purchase and sale of insurance products introduced a system of discounts and allowances, which takes into account the individual characteristics of policyholders.
Classification of insurance
The classification of insurance depends on the objects and risks, industries and forms of organization and conduct, etc.
With compulsory state insurance, the relevant legislation determines the list of objects subject to insurance, the amount of insurance liability, the level of insurance coverage, the basic rights and obligations of insurance participants, the procedure for the formation of tariffs.
In the form of involvement in the insurance relationship, there is a distinction between compulsory and voluntary insurance.
Obligatory insurance is carried out by force of law. The obligatory form of insurance is established by the state, when the insurance protection of an object is related to the interests of society.
Mandatory, as a rule, are:
health insurance;
State personal insurance of civil servants;
Personal insurance at the expense of the employer of citizens engaged in life-threatening activities;
Life and health insurance of crew members;
Passenger insurance;
Insurance of liability for damage during construction;
Fire insurance.
Voluntary insurance is carried out on the basis of a voluntarily concluded contract between the insurer and the insurer. Depending on the object of insurance, three branches of insurance are distinguished: personal, property and liability insurance.
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