Kindlustusfirma

Kindlustusfirma, or insurance company, is a financial institution that provides risk transfer by issuing insurance policies in exchange for premiums. By pooling funds from many customers, it indemnifies those who suffer covered losses and aims to remain solvent to meet future claims.

Insurance firms offer a range of lines, including life and health, property and casualty (such as home, auto, and commercial risks), liability, travel, and specialty coverages. Some firms specialize in a single line, while others operate as multi-line providers.

Core activities include underwriting, pricing, policy administration, claims handling, and risk management. Premiums are invested to support future claims and other obligations, under strict regulatory capital requirements. In the European Union, insurers comply with Solvency II standards and national regulators enforce consumer protection and solvency rules.

Claims processing involves assessing loss events, validating coverage, and paying legitimate claims, subject to policy terms and exclusions. The relationship with customers is governed by transparency, disclosure, and complaints handling, with recourse to regulators in cases of unfair practice.

Market dynamics include distribution through agents, brokers, and digital platforms, ongoing digitalization, and the use of reinsurance to manage large or catastrophic risks.