What Does Insurer Mean?
An insurer is a party who agrees to compensate people, companies, or other organizations for specific financial losses. This service is typically provided for an exchange of payments called premiums. The exact perils that are covered and the exact cost of the premiums are laid out in the contractual agreement between the insurer and the insured.
Insuranceopedia Explains Insurer
Insurers are often large companies who insure many different parties. The more premiums that an insurer has coming in, the more money it has available to pay out claims if there is need to do so. Because typically not every policyholder files claims at the same time, insurers are commonly able to meet their claims obligations with the money they receive from premiums. Insurers often use actuaries and other professionals to help them do the mathematical calculations necessary to make sure they price their premiums correctly to cover all of their risks. Insurers commonly cover perils associated with automobiles, homes, health, businesses, liabilities, and more.