What is insurance? Here is the answer

Insurance is an agreement between an insurance company and a policyholder that serves as the basis for the insurance company to receive premiums in exchange for:

a. Providing compensation to the insured or policyholder for losses, damages, incurred expenses, lost profits, or legal liabilities to third parties that the insured or policyholder may suffer due to an uncertain event; or

b. Providing payments based on the life or death of the insured with benefits that have been predetermined and/or based on fund management results.

Insurance business encompasses activities in the field of:

a. Insurance services or risk management.
b. Reinsurance of risks.
c. Marketing and distribution of insurance products or Shariah-compliant insurance products.
d. Insurance consultancy and intermediation, Shariah-compliant insurance, reinsurance, or Shariah-compliant reinsurance, or
e. Insurance loss assessment or Shariah-compliant insurance.

Insurance business is conducted by:

Insurance Companies:

a. General Insurance Company: A company that offers risk insurance services that provide compensation for losses, damages, incurred expenses, lost profits, or legal liabilities to third parties that the insured or policyholder may suffer due to an uncertain event.

b. Life Insurance Company: A company that provides services in risk mitigation and provides payments to policyholders, insured parties, or other eligible parties in the event of the insured's death or survival, or other predetermined payments to policyholders, insured parties, or other eligible parties at specified times based on fund management results.

c. Reinsurance Company: A company that provides services in reinsurance against risks faced by property insurance companies, life insurance companies, surety insurance companies, or other reinsurance companies.

Insurance Business Support:

a. Insurance Brokerage Company: A company that provides intermediation services in insurance or Shariah-compliant insurance coverage and handles insurance claim settlements by acting in the interest of the insured.

b. Reinsurance Brokerage Company: A company that provides intermediation services in reinsurance placement and handles reinsurance claim settlements on behalf of insurance companies, surety insurance companies, or reinsurance companies.

c. Insurance Loss Assessment Company: A company that provides assessment services for claims and/or consulting services on insured objects.