Insurance, as the term suggests, is a process of risk-management with the goal of insuring oneself or a property from the risk of loss. Insurance can also be viewed as the transfer of the risk of a loss from an entity to another entity, which is generally an insurance firm, by paying the firm a regular premium. It is actually an efficient method of preventing a huge loss by paying incurring a small loss.

The insurance process has two entities: the entity that buys the insurance, known as the insured; and the entity that sells the insurance, known as the insurer. The other factors influencing the process are the insurance rate, which in turn decides the premium to be paid by the insured entity. Any property that can have a risk of loss can be insured. It includes automobile insurance, health insurance, home insurance, life insurance, property insurance, credit insurance and many more.

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