What is insurance?
Insurance can often seem confusing for those outside the industry but at its core insurance is simply about helping those in need.
Let’s use an analogy: you and your neighbours contribute money on a regular basis (called premiums) to build up a pool of money far larger than you would be able to build up alone.
Then, if something happens to your car, your house or even your phone you can use some of the money from the pool to repair it instead of being hit with a big bill unexpectedly.
This is the essence of insurance: a group of people coming together to help prepare and shield each other from unexpected risks.
Insurance companies act like the coordinators of these groups by collecting the premiums. They then use these to help people cover costs when something unexpected occurs.
Insurance policies can cover everything from houses, cars, and businesses to cargo ships, wind turbines and even space shuttles.
