Insurance means spreading of loss or sharing of risk .Do you agree?

Yes I agree.

Insurance is that a group of people exposed to similar risk come together and make contributions towards formation of a pool of funds. In case a person actually suffers a loss on account of such risk, he is compensated out of the same pool of funds.

I Agree.

Because insurance is a risk transfer process starting with the original insured who by obtaining the insurance policy transfer his own risk to the insurance company and also the insurance company by reinsurance  retain part of the risk and transfer another part to the reinsurers whom by retrocession retain part of the risk and transfer another part to the retrocessionaires. So, by this series the condition of spreading ,scattering and sharing the insured risks are fulfilled.

                                    Thanking you.

Yes i agree because insurance is a pooling of risk 

I agree, buy purchasing an insurance policy, you have practically transfered certain risk such as death, critical illness, disability and etc. to the life insurer. Also it depends on the policyholder on how he wants to hedge the risk as he can opt for protection or wealth accumulation. 

Agreed,diversification of Risk to overcome unkown financial and  physical impact

it is sharing of risk

Gentlemen.

I do agree with you. But apart from that there is also sharing of profit especially in life insurance.

In the begining of the2000 century LIFE INSURANCE CORPORATION OF INDIA was the sloe player in India providing Life insurance.

The only competition was Postal life insurance which was too feeble to challance the LIC.

The LIC though the organisatin was Govt owned and not very efficientwas a monopoly and was making monopoly profits.

It used to share this with policy holers as bonus and loyality additions. Insurnce was sold as an INVESTMENT OPTION.

But with theliberlisation of the insurance sector the PROFIT has decreased as there is no MONOPOLY NOW.

Now adays pure insurance policies with HIGH SUM ASSURED with minimum premium and no profits has become popular.

The Life Insurance market in India after liberlisation is very diversified with AIG Prudential and other Global players in the market.

Yes ,I agree.Death is certain for human beings. But, time of death is not certain.

yes, i do agree with you, but who bears the bulk of loss is the insurance company.

I agree with all the valuable information provided by the experts. I would also like to throw some light on the history of insurance or the forerunner of modern insurance, which was clearly for the purpose of risk sharing.

The earliest form of insurance occurred when wealthy Chinese merchants along the Yangtze River decided that it was too risky to place all their merchandise on a single vessel and sail it down the river. To reduce their risks, they split the shipment into smaller portions and placed them on several boats. They knew that it was unlikely all the vessels would sink or suffer damage and that if one did sink, the majority of the cargo would reach its destination safely. Although this arrangement was not formally called insurance, it was the forerunner of the modern insurance company, which also recognizes the importance of spreading risk.

Lloyd's of London

The more formalized insurance arrangements we are familiar with today actually began at a coffeehouse owned by Edward Lloyd near London. In the late1600s, wealthy merchants gathered at the coffeehouse to discuss their latest ventures, which often involved overseas shipments, increasingly to the new world. Concerned that they could be devastated financially if an entire shipment was lost, merchants began to make arrangements with each other to share their risks of loss.

When a shipment was scheduled to depart, the owner posted a notice with a complete description of the cargo and vessel at the coffeehouse. Other merchants looked at the description and signed their names beneath with a percentage of the cargo they were willing to pay for if the vessel were lost. When100 percent of the cargo was insured in this manner, the vessel sailed.

Thus we see that Insurance evolved on the basic principle of Spreading of Loss/ Sharing of Risk.