What are the functions of insurance? What are the basic functions of insurance

The function of insurance is divided into basic functions and derived functions, and the basic functions are the original and inherent functions of insurance, which do not change due to the change of time and the difference of social form. Derivative functions are new functions that arise on the basis of the basic functions of insurance with the enrichment of insurance content and the development of insurance types.

1) The basic functions of insurance.

The basic function of insurance is the economic security function of insurance, which is embodied in the function of insurance compensation and the function of insurance payment.

1 The function of insurance compensation.

Insurance is to pay compensation according to the actual amount of loss within the validity period of the insurance and the scope of liability agreed in the insurance contract and the insured amount when a specific disaster occurs. This principle of compensation allows the actual loss of existing social wealth caused by disasters and accidents to be compensated in value and restored in use value, so that the process of social reproduction can be carried out continuously.

2 The function of insurance payment.

Since it is difficult to denominate the value of a person in monetary terms, life insurance is an insurance that is paid by agreement between the insurer and the policyholder. Therefore, the function of life insurance is not to compensate for losses, but to pay a fixed amount.

2) Derivative functions of insurance.

The derivative functions of insurance mainly refer to the investment function and disaster prevention and loss prevention function of insurance.

1 The investment function of insurance.

The investment function of insurance is the function of insurance financing funds or the function of using insurance funds. Since there is a certain time difference between the compensation and payment of insurance, this provides the possibility for the insurer to use funds. At the same time, in order to make the insurance operation stable, the insurer must ensure the preservation and appreciation of the value of the insurance, which also requires the insurer to use the insurance funds.

2 The function of insurance in disaster prevention and loss prevention.

Disaster prevention and loss prevention is an important part of risk management, and insurance itself is an important measure of risk management. In order to stabilize the operation, insurance companies should analyze, evaluate and evaluate risks, and reduce the occurrence of losses through artificial precaution. Moreover, disaster prevention and loss prevention, as one of the links in the operation of insurance business, has always run through the entire insurance work.

The basic functions of insurance are:

1.Financial Compensation. Insurance** against loss of life caused by natural disasters and accidents.

This is because if an accident happens in daily life, it can cause property damage or loss of life, and if you don't get financial compensation in time, it can ruin a family. In this context, insurance is a scheme to financially compensate for the loss of life caused by natural disasters and accidents. Social reciprocity refers to the fact that any risk is universal and contingent, that is to say, everyone cannot expect to experience a natural disaster or accident, while insurance refers to a natural disaster or accident that is only suffered at a certain point in the same space, that is, compensation for losses after the accident.

2.It varies according to the conditions. Insurance is essentially an economic compensation system, and the risks in the development of social productivity and commodity economy exist objectively.

The essence and premise of the development of insurance is loss compensation, which is a special adjustment and redistribution relationship in the national economy with disaster loss compensation as the activity content. Although the content and nature of the economic relationship it reflects varies from condition to condition, insurance is also a means of financial compensation, so the basic function of insurance is financial compensation.

3.Derivative functions. Insurance can accumulate a large amount of insurance money.

In addition to compensation, it can also be used for direct and indirect investments to earn interest income. These financial activities can increase insurance income and promote the operation and development of the insurance industry. In this sense, finance is also an important derivative function of insurance.

An insurance company refers to the organizational form of an insurance institution. Generally, insurance organizations are state-owned, privately owned, joint venture, and cooperative.

The basic functions of insurance: The basic functions of insurance include the function of apportioning losses, economic compensation, investment and financing, and disaster prevention and loss prevention. The loss apportionment function is that the insured is willing to pay a small amount of insurance premium in exchange for compensation for a large amount of uncertain loss.

Spread the large losses of a small number of people by charging the policyholder's fees. The function of economic compensation is to compensate the units or individuals who have suffered from disasters and accidents, so that the losses of the units or individuals can be reduced to a minimum.

1. The function of insurance is to diversify risks and organize economic compensation.

It is the most basic function of insurance, which embodies the essential characteristics of the insurance system and the basic content of insurance activities. Dispersed danger refers to the direct or indirect aggregation of a large number of units and individuals in the same danger into a single whole. Depending on the frequency of the accident, the amount of loss, and the amount of insurance.

Each unit and individual shall share a certain amount of money before the occurrence of danger to form insurance**. In the event of a dangerous accident, compensate for the losses of a small number of units or individuals.

2. Organizational economic compensation is to provide economic compensation to a small number of members who have suffered losses due to dangerous accidents on the basis of gathering the majority to spread risks and jointly establishing insurance. Dispersion of risk and organizational economic compensation are complementary and organic wholes. Dispersed insurance gathers independent individuals in the society through a certain organizational form to form insurance, which provides a premise for compensating for losses; Organizational financial compensation makes it possible to spread risks and compensate for losses through specific insurance payment actions.

The relationship between risk diversification and organizational economic compensation is that organizational economic compensation is premised on risk diversification. Without concrete financial compensation, the risk of dispersed benches will become an empty phrase.

Extended Materials. The insured amount refers to the maximum amount that the insurer bears the responsibility to compensate or pay the insurance money. In different insurance contracts, the methods and principles for determining the amount of insurance are different:

In a property insurance contract, the valuation and determination of the insured value directly affects the size of the insured amount. The insured value is equal to the insured amount, i.e., the full amount of insurance. If the insured amount is lower than the insured value, the insurance company shall compensate according to the ratio of the insured amount to the insured value.

If the sum insured exceeds the insured value, it is excess insurance. If the insured amount exceeds the insured value, it is invalid. Malicious excess insurance is a type of fraud that can void an insurance contract.

In a life insurance contract, the value of a person.

It is measured by the non-trillion state law. The insured amount is the maximum benefit limit or actual payment amount agreed upon by both parties to the life insurance contract and borne by the insurer. According to the provisions of travel agency liability insurance, the insurance amount of travel agency liability insurance shall not be lower than the following standards: domestic travel.

The liability limit is 80,000 yuan per person; The liability limit for inbound and outbound tourism is 160,000 yuan per person.

The function of insurance refers to the intrinsic function of insurance, which is determined by the nature and content of insurance. It is generally believed that the functions of insurance are divided into basic functions and derivative functions.

The basic function of insurance is the original and inherent function of insurance, which does not depend on the passage of time and social form.

Change. The basic functions of insurance include the following two.

1) Compensation for loss function.

Insurance is the period of validity of the insurance and the scope of liability and the amount insured in the insurance contract when a specific risk damage occurs.

, compensation will be paid according to the actual amount of loss. This principle of compensation makes the actual loss caused by the disaster of the already existing social wealth potato segment compensated under the value and in the use value.

The process of social reproduction can be carried out continuously. The compensatory function of insurance is only to redistribute the existing wealth of the society, but not to increase the wealth of the society. This is because from the perspective of the Society, the income of the individual insured who has suffered risk damage is the loss of the majority of the insured who did not suffer the damage, and it is the compensation given by all the policyholders.

Such compensation includes both compensation for damage to property and compensation for damage caused by liability.

2) Economic benefit function.

Property & Life Insurance.

It is two completely different types of insurance. Because of the value of people.

It is difficult to be denominated in currency, so life insurance is an insurance that is paid by agreement between the insurer and the policyholder. Therefore, the function of life insurance is not to compensate for losses, but to pay for economic benefits.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

Summary. Kiss <>

I'm glad to answer for you, the functions of insurance mainly include the function of compensating for losses, the function of economic payment, the function of disaster prevention and loss prevention, the function of financing, etc. Insurance can transfer the economic losses of the insured to the insurance company to a certain extent, and the insurance company performs the function of insurance payment. Insurance also includes social insurance and commercial insurance, of which social insurance also has the function of stabilizing social life and redistribution.

What are the functions of <> insurance?

Good. Kiss <>

I'm glad to answer for you, the functions of insurance mainly include the function of compensation for losses, the function of economic payment, the function of disaster prevention and loss prevention, the function of financing, etc. Insurance can transfer the economic loss of the insured to the insurance company to a certain extent, and the insurance company performs the function of insurance payment. Insurance also includes social insurance and commercial insurance, of which social insurance also has the function of stabilizing social life and redistribution.

<>Give you a little sail and a heart].

Kiss <>

I'm glad to answer for you, the basic hosiery travel function of insurance is the original sail of insurance and the inherent function. There are two main views on the basic functions of insurance, one view is that the basic function of insurance is to allocate losses and compensate for losses or pay insurance benefits; Another view is that the basic functions of insurance are economic compensation and insurance payment. The economic compensation function of the stool is to compensate according to the actual loss amount of the insured subject matter according to the insurance contract after the occurrence of an insured accident and the loss caused, which is the basic function of property insurance; The function of insurance payment is that the two parties to the insurance pay according to the insurance amount agreed in the insurance contract when the insured accident occurs, which is the function of life insurance.

The functions of insurance include risk transfer, risk diversification, and protection functions. Risk transfer absence refers to the transfer of the risk faced by an individual or enterprise to the insurance company, which bears the risk, and the individual or enterprise can obtain corresponding protection.

Risk diversification refers to the fact that the insurance company spreads the risks that may be suffered by multiple insureds through the combination of a large number of insurance contracts, thereby reducing the risk borne by a single insured. The protection function is the most basic and core function of insurance, that is, to provide financial compensation or assistance to the insured to ensure the safety of their life and property. Through these functions, insurance can help individuals or businesses to effectively deal with various risks, providing protection and assistance.