Business Studies, asked by vilas575, 1 year ago

Why is insurance said to be a mechanism of risk coverage and investment?

Answers

Answered by Anonymous
4

Insurance facilitates the spreading of risk from the insured to the insurer. The basic principle of insurance is to spread risk among a large number of people. A large number of persons get insurance policies and pay the premium to the insurer. Whenever a loss occurs, it is compensated out of funds of the insurer.

Answered by Anonymous
19

Explanation:

insurance c2b a mechanism of risk coverage and investment

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