insurance markets

Insurance markets are systems where individuals and businesses buy policies to protect against financial losses from unexpected events, like accidents or damages. Insurers assess risks, set premiums, and pool resources to cover claims, helping spread risk across many policyholders. By paying a premium, a person transfers potential financial burden to the insurer, providing peace of mind. These markets rely on accurate risk assessment, transparent pricing, and regulatory oversight to ensure fairness and stability. Overall, insurance markets facilitate risk sharing, enabling society to manage uncertainties more effectively and recover more quickly from adverse events.