Insurance company - what is it? Structure and functions

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

An insurance company is a financial body that provides insurance services to individuals, organizations of various forms of ownership. In order to understand the mechanisms of work of insurance companies, it is necessary to consider the principles of providing monetary compensation to insured persons.

What is insurance

Insurance is a way to protect your own interests, well-being in an unfavorable set of circumstances. The probability of such events occurring is relatively small, but on the whole quite real. Based on the statistical data, the insured risk, the sum insured and the tariff are determined. Compensation for damage occurs only if an insurance contract is concluded. The source of funds are the reserves and funds of the insurance company (IC).

In our country, the legal basis for the provision of such services are:

• Law of 1992 "On the organization of insurance business in the Russian Federation".
• Civil Code of the Russian Federation.
• Other documents.

The result of the work is an insurance product, which is a list of insurance services provided. An insurance policy serves as evidence of insurance. It serves as a kinda guarantee that in the event of the occurrence of certain circumstances, the insurance company will undertake to pay the specified amount of money in favor of the final beneficiary.

What are insurance companies

A standard insurance company is a separate organization that concludes contracts for the provision of insurance services and their maintenance. In our country, any UK is a legal entity that has a certain authorized capital and offers its services on the basis of current legislation.

Providing insurance products is the direct responsibility of insurance companies. Based on the probable occurrence of events and risk assessment, SK agents offer insurance policies and guarantee damages in case of unfavorable circumstances.

Of course, like any commercial structure, the purpose of the company is to make a profit. But a special kind of activity allows you to accumulate huge amounts of money on the accounts, which the insurance company can rightfully dispose of. This financial splendor can be provided to other commercial organizations on a loan basis. The terms of such investments are regulated by national insurance legislation and financial authorities. In Russia, these are the Ministry of Finance and the Central Bank.

Types of insurance companies

Classification of insurance companies is quite diverse. For example, insurance companies in Moscow define themselves in their statutory documents as enterprises located instate, private or municipal property. Such organizations differ in the nature of the services provided. There are narrowly specialized enterprises that have made a business for themselves in providing several insurance services, for example, auto insurance.

There are multi-profile insurance companies that can insure everything and everything. There are reinsurance insurance companies and non-state pension funds, which, by the way, also belong to insurance organizations. ICs also differ in the service area in which they offer insurance. The insurance company needs buyers of policies - after all, the more premiums the agents collect, the faster the company's profit will increase. ICs operate in a certain territory, opening branches and representative offices. Geographically, such enterprises are divided into:

• local - offer insurance policies in a particular area or district;
• regional - have representation in several regions, autonomous centers;
• national - operate throughout the country;
• international - have representative offices or branches in other countries.

Ratings of insurance companies

Regularly, there are reports in the media about the place in the reliability or popularity ratings of this or that insurance company. This abundance of information, in theory, should attract the attention of potential policyholders and encourage them to purchase insurance services in this particular area.companies. From this point of view, one can consider the attractiveness of several insurance companies offering their services in the capital and beyond. What do insurers write about themselves? What own achievements do they bring to the fore? For analysis, let's go through the websites of insurance companies, and as reference points we can take the two most indicative values - the amount of insurance fees - that is, the amount of payments made for insurance policies, and the amount of insurance payments that the company realized in 2015.

RESO-guarantee

RESO-Garantia is positioning itself as one of the largest players in the Russian insurance market. Currently, it is the winner of the nationwide contest "People's Brand / Brand No. 1 in Russia", a multiple winner of the Golden Salamander award, the winner of the national award "Financial Olympus", the winner in the nominations "VHI Insurer" and "Auto Insurance".

Besides, RESO-Garantia ranked third last year in collecting insurance premiums - 276 billion rubles. Payments amounted to 124.2 billion - that is, the company gave almost half of the funds raised to insured persons.

SK "MAKS"

The company was founded back in 1991. Priority for himself calls auto insurance; CASCO and OSAGO, voluntary medical insurance and property insurance. The list of achievements includes a high reliability indicator from the national rating agency "Expert RA". For last year 2015insurance company "MAKS" collected more than 37.2 billion rubles, and payments amounted to almost 92%.

SOGAZ

An insurance company with that name can rightfully be considered a national one - its branches are located in every region of our country. An analysis of the financial performance report indicates that in 2015 the volume of the insurance premium amounted to about 78 billion rubles. The volume of payments as a result of the occurrence of insured events is 27.3 billion rubles.

Consent

An insurance company with this name has been operating in the insurance services market for over 22 years. It actively cooperates with the media, has an extensive network of its own representative offices, and sells its services through intermediaries. At the end of 2015, the company received 56 billion rubles of insurance premiums, and paid out 46.5 billion rubles.

For potential customers, high figures of insurance fees indicate the reliability of the insurance company, its financial stability. And the figures of payments serve as a definition for the readiness of the UK to meet the needs of its customers. Another question is how true these figures are. To determine the reliability of an insurance organization, it would be useful to look into its reports, according to the requirements of the Ministry of Finance, such information is certified by the management of the IC, in the future it should be available on the websites of this insurance company. Financial reports will show the reliability and functionality of the designated insurers. The analysis of reviews on insurers is also interesting, although these data should be trusted less - some of the positive reviews are simply paid for, and some of the negative ones can be written by citizens who failed toreceive payment for objective reasons. An analysis of this information can give an interesting assessment of the development trends of the selected insurance companies and the entire Russian insurance market as a whole.