Insurance

Insurance is a financial risk management contract in which an individual or entity (the insured or policyholder) pays regular premiums to an insurance company (the insurer) in exchange for the insurer's commitment to provide financial compensation or indemnification for specified losses, damages, illness, disability, or death arising from covered events. Insurance operates on the principle of risk pooling — by collecting premiums from a large number of policyholders, the insurer accumulates a fund from which it pays claims for the relatively few who experience covered losses, making large, unpredictable risks manageable through predictable, regular premium payments. In India, insurance is regulated by the Insurance Regulatory and Development Authority of India (IRDAI), and encompasses life insurance (term, endowment, ULIPs, whole life), general insurance (health, motor, home, travel, commercial), and reinsurance. For investors on Ventura Securities, insurance products are both a risk management tool for personal financial planning and a major, complex investment sector in Indian equity markets — with listed insurers evaluated on metrics including embedded value, VNB margin, combined ratio, and solvency ratio.