Home >> Insurance Companies
Insurance companies run the business of risk by providing a contract to offer financial or loss protection to an entity or individual. The business is carried out by the company directly or through intermediaries. The policy is sold out by insurance agents that are licensed by the company to do so whereas on the other side insurance brokers work for the client in the process. Banks are also not behind and they work as under the term bancassurance.
The insurance intermediation directive in 2002 passed by European Union added a facility to reduce search, transaction cost and information asymmetry between insurers and buyers. Further the insurance brokerage industry is accounting most of the shares of market earning their commission fees. Even they earn non-cash compensation by insurance companies for their good working skills.
The insurance companies are leading to significant changes in how consumers purchase insurance products by undergoing transformation in marketplace. It thus adds its vital role in economy of the country.