INSURANCE COSTS UPON SOCIETY
But insurance costs shall be ignored. For inside the insurance company needed money. Not all of the premiums paid by policyholders it used to pay losses – losses. For example, over the past decades ago, shares of the company's capital – company fire insurance accident as one group has issued 63 – 69% of annual premium income. Approximately 78% of the annual revenues of the company – insurance company used to pay jobless claims policyholders now or in the future. Cost – the cost of capital stock insurance company fires and accidents over the last decade ago revolves around 31%-36% of the annual premium. If the minimum wage – average represented a loss 63% and the average minimum wage – average cost – the fare is 35%, then this means 98% (63% + 35%) of premiums generated. Life insurance company operating expenses hover around 16%-18% of the annual income of the life insurance company's efficiency seems to be high this is misleading. The low percentage of life insurance company operating expenses against revenues was due to higher investment income. In many ways life insurance company it is more than just insurance agencies. He also serves as the institution for savings.
The difference between the premiums generated by payment of losses, used to compensate for those working in the insurance industry or those who provide capital, equipment and operating the room. Most of the funds used in the activities of prevention of harm and to build up a surplus to be used expand operations or strengthen the company in the future. It takes an awful lot of people to fill jobs insurance industry. The insurance business using the productive power of more than 1,410,000 people. This business also takes up a vast productive areas and a large amount of capital. Tied her funds this is the portion of the cost of insurance for the community. However, the capital costs of clean community used in the insurance business is not too high, due to reserves that must be maintained by the insurance companies are not allowed to idle for granted unless activated in other industries.
In addition to these costs, there are two more things that could be mentioned. Insurance is the cause of a number of loss-fraudulent losses. Sometimes insurance companies became a victim of arson (burning home on purpose), murder, claim suicides. The destruction of life and property on purpose to collect the results of the insurance is the insurance cost is real although relatively unimportant to society. Insurance may also eliminate the urge to protect property against losses. The absence of this impetus may have been the cause of the loss--a loss that normally might be prevented.
OVERVIEW
Humans may suffer losses – losses. To reduce the financial burden of losses – losses, he made a deal to give the loss-the loss to individual members of a group that is also open to loss-similar losses. This agreement is known as the insurance contract.
Insurance policy is made by the business organization called insurance companies (insurers). To function as it should, the insurance company must have a large number of policyholders who acquired it either directly from the insurance company representative or through an agent.
Insurance is a business involves technical skills of statisticians, financial analysts, engineers, economists, lawyers and others.
Contracts must be drafted carefully, restrictions shall be determined
dependent, rates should be applied fairly, and funds must be invested
wisely.
Because of insurance concerns public interest, then it is governed by strict. Two broad division of insurance is private insurance and government insurance. Private insurers can further be divided into life insurance and property insurance. Insurance of property override the property against loss or damage, including losses to the wearer; responsibility to a third party; accident and sickness; and collateral (suretyship).
Can Government insurance is voluntary or mandatory. When mandatory, a popular name are the social insurance.
Insurance contributions to society by improving equitable title of production factors, participated in activities falls prevention, indemnify losses – losses, and is the basis for the credit structure, eradicate the concerns, and provide a channel for funds that can be invested.
This donation is not without costs. most premium-premiums collected out pay operating fees. Insurance business takes a lot of all labor, capital, and space. Insurance became the cause of a number of loss-fraudulent losses. He also sometimes responsible for losses – losses due to carelessness, because sometimes cut off the stimulation a person to protect his assets. But if weighed, insurance benefits for society far exceed social costs.
