Versicherung

Versicherung, a German term for insurance, refers to a contract in which an insurer agrees to compensate the insured for loss or damages arising from specified risks in exchange for a premium. Insurance functions as a risk management mechanism that pools risk across many policyholders, enabling individuals and organizations to transfer uncertain financial losses to a collective system. A policy describes covered events, limits, exclusions, and the period of coverage. The insured pays a premium; the insurer assesses risk, sets terms, and issues a policy. In the event of a covered claim, the insurer pays the agreed settlement up to policy limits.

Common categories include life insurance (Lebensversicherung) providing financial protection on death or retirement, health insurance (Krankenversicherung), and property and casualty insurance (Sach- und Haftpflichtversicherung) for damage to property or liability. Other lines include auto, disability, travel, and liability insurance. Policies define coverage, conditions, deductibles, and exclusions. Risk assessment, underwriting, and actuarial analysis determine premiums, which reflect factors such as age, health, occupation, and exposure. Claims handling involves verifying loss, determining eligibility, and paying compensation or arranging repairs. Reinsurance, where insurers obtain coverage for large risks, helps stabilize financial risk across the sector.

Insurance markets are regulated to protect consumers, ensure solvency, and promote fair competition. In Germany, insurers operate under BaFin supervision and through statutory and private coverage options. Globally, products and terms vary by jurisdiction, but most systems rely on clear contract language, risk pooling, and actuarial pricing to define obligations for insurers and policyholders. The field continues to evolve with technology, including digital underwriting and data-based fraud detection, while maintaining core principles of risk transfer and financial protection.