Types of Insurance Companies

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.