In risk management products, insurance is a mechanism that can divert the risks that might befall the insured to the insurer or the insurance party. This risk transfer is carried out by the payment of claims given by the insurer to the insured party who gets a loss from an event or an insured situation.
Insurance can not stop the risks that may befall you and your family and your assets. However, this type of service is able to reduce or reduce the impact of losses arising from a risk. This makes insurance increasingly popular in the present because everyone does not want excessive worry about the possibility of losing from the risks that lurk.
Proof of risk transfer from the insurer to the insured listed in the insurance policy issued by the insurance party to the insured who has fulfilled the obligation to pay the premium. In insurance, there are three elements that serve as the main guidelines for the insured risk reduction mechanism as follows.