Principles

Principles

Financial market
participants

Collective investment schemes Credit unions Insurance companies Investment banks Pension funds Prime brokers Trusts
Finance series
Financial market Participants Corporate finance Personal finance Public finance Banks and banking Financial regulation

Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring. In order to be insurable, the risk insured against must meet certain characteristics in order to be an insurable risk. Insurance as a financial intermediary is a commercial enterprise and a major part of the financial services industry, but individual entities can also self-insure through saving money for possible future losses.

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