insurance company

Quick Reference

A company whose main activity is providing insurance. This may include life, fire, motor, health, and many other varieties of insurance. As the premiums for policies are paid before claims occur, and in the case of life policies the funds collected accumulate for decades, insurance companies hold large stocks of assets. This makes them major participants in the market for government bonds, equity shares, and commercial and household mortgages.

Subjects: Economics.

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