Definition:
The insurance is a form of protection based on a contract through which a person or a legal constituted entity, which will be called insured, cease some risks to an insurance company, insurer, paying a certain amount called insurance fee.
The insurance company is obliged through this contract to pay to the insurer compensations in case some unfortunate events mentioned in the contract take place.
Why insurances are useful?
Regardless how much the human kind evolved, one thing is clear: we can not control everything what is happening around us, the best example being probably the nature. Mass media presents often the natural disasters that hit various regions, and unfortunately Romania is not an exception. But the nature is not the only factor that could affect us and causes damages: accidents happen everywhere and robbery, theft, crime, all belongs to the human nature.
Risk will always exist. But there are other risks related to health, professional activity and in case of companies risks related with merchandised goods or company’s assets. This is why it is useful to try to share the risks and to transfer them to specialized companies.
These are the reasons for which the insurance services or better-called products emerged. This products or services offered by specialized companies which take over the risks in exchange for an amount of money. This way, paying a fee is protecting the insured against the problems caused by accidents, either car accidents or other kind, and could save the company from the financial issues which could lead to bankruptcy, etc.
An argument of insurance utility is the large presence in the Occident, where a real insurance culture exists. The large majority of people from western countries have all kind of insurance, not only the vehicle liability insurance, but also insurances for their life or goods.
Why this? This is because in the western countries the sense of propriety is quite developed and all people wish to protect their belongings against different risks, but also because people in the western countries are very interested about their future and the future of people around them. This is why the insurances is a very good for developing a safe future.
What is the insurance broker?
The insurance broker is a specialist in insurance market. His services are generally oriented (but not exclusively) on companies. There are many insurance companies on the market, there are more and more insurance products on the market and the diversified offer brings more and more specialized products.
Under these circumstances it is difficult for the client to choose the best solution to his problem, especially if he doesn’t know very well how insurances are working. Here is where the insurance broker steps in. The broker could be seen as an intermediary, but it’s clearly more than that, it is a specialist. Having advanced knowledge the market particularities, the offer of insurance products, the market context, the insurance development technics, the broker can choose for his customers the best solution out of a multitude of options which could not seem too different for a newcomer.
