Getting insured is one great way to
secure your future. While shopping for insurance you will came across many
insurance companies. Getting a right knowledge about the types of insurance
companies is very important.
Different kinds of insurance
companies can be classified as:
Life insurance companies
These insurance companies sell life
insurance, annuities and pension products. It mainly deals with long and
short-term monetary investments, college plans, and plans that mature and
benefit your surviving family at the time of your death.
Non-life
insurance companies
These are one of the different kinds
of insurance companies are which sell other types of insurance. These companies
are mainly concerned with protecting property from many risks and natural acts
like fire, lightning, typhoon, flood and earthquakes.
Composite
insurance companies
These insurance companies types
sells both life and non-life insurance.
Insurance companies are also
classified as either mutual or stock companies. Mutual companies are owned by
policy holders whereas stock companies are owned by stock holders.
Reinsurance
companies
Another of different types of
insurance companies is the Reinsurance companies, which sell policies to other
companies. This helps them to reduce their risks and protects them from huge
losses. The reinsurance market is dominated by a few large companies, with huge
reserves.
Captive
insurance companies
These are other kinds of insurance
companies that can be defined as limited purpose companies. It is established
with the main objective of financing risks originating from their parent groups
or groups. It can be said as an in house self insurance vehicle. Captives also
represents commercial, economic and tax advantages to their sponsors. They help
in risks management.
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