TERMINOLOGIES ON INSURANCE

Insurance: A means of security from damage, loss or penalty against a future occurrence of an uncertain event.

Insurer: One who provides compensation if some specified risk occurs, often agreed by policy(contract) an insurer is also known as insurance company

Insured: One who buys a coverage (insurance policy) from an insurance company, they are also known as policy holders.

Premium: It is the amount paid to the insurer to protect the insured interest.

Hedge: It is a barrier to protect someone or something from harm 

Moral hazard: The prospect in which the party insulated from risk may behave differently from the way it would behave if it were fully exposed to risk

Fraud: An act of deception carried out for the purpose of unlawful gain.

Investment: A state of putting in a capital in expectation of deriving income or profit from its use or appreciation.

Underwriting: Is an agreement to financial responsibility for something and guarantee against its failure