The roots of insurance lie on Pre-Christian times and has progressed since then to current levels in which you can find companies engaged in this business worldwide.
The insurance business model is mostly about risk management. As any for-profit business, insurance companies aim at maximizing income while minimizing risk. In this context, their main income comes from two major sources:
- the premium paid by policyholders
- the positive returns from investing this collected premium in assets such as stocks and government bonds
Since insurance companies can fail when their cash reserves prove not to be sufficient to pay-out all claims, they face bankruptcy and policyholders can lose their already paid premium. Thus, when looking for the right insurance policy, one should always analyse the concerned insurance company's financial stability.
That's why, we, at TopCheck, make great effort to work with the best insurance companies - those which offer you the best prices and customer support but, mostly, those that will pay your claims in case of an accident.