― What is InsuranceAccording to law and economics insurance is a type of risk management principally exercised to circumvent the risk of potential loss. A company selling that is called insurer. It has become a lucrative business around the globe.That's rates, which are used to determine the amount of premium, may vary from company to company. An uncomplicated example is life insurance. A person pays a certain amount of premiums to the insurer. When he dies a predefined amount is given to [...].