Insurance Jobs
A means of ensuring the security of the insured
One of the most prominent functions of insurance is that it provides the insured with the security he desires to obtain against the dangers that may befall him that threaten him in his person or his money, which his basic instinct drives him to. This security that insurance guarantees is found in all its types, whether in damage insurance or personal insurance. In damage insurance, the insured insures against the dangers that may befall him in his financial liability. If he insures his money against the risk of fire, for example, and this risk occurs, he will find in the insurance amount that is due to him what compensates him for that loss, and what enables him to obtain a replacement for what was lost from his money. The same is the case with liability insurance, as modern developments have led to an increase in cases of liability and their causes, and through liability insurance, a person can spare himself the results of this liability and carry out his activity freely and reassuredly without fear. Personal insurance plays a major role in spreading a sense of security and reassurance in people's souls, as the safety of the body and soul is something that does not last, and therefore, through insurance, a person can protect himself and his dependents from the effects of his disability or death. If insurance has such a function at the individual level, i.e. at the level of the insured, then the security that insurance achieves for all insured persons leaves important effects at the social level. From this perspective, and in view of the confidence in the future that it instills in the souls of the insured, it achieves a general social interest, as by granting security to the insured, insurance achieves the prosperity of the national economy, and becomes a tool for increasing production in society. It leads to preserving the elements of production, especially the labor force and capital. In personal insurance, when an individual becomes unemployed or sick, he does not become a burden on society because he finds in the insurance amount a source of livelihood for him if it is in the form of a regular income for life, and he can invest this amount if he receives it in one payment. In insurance of things, insurance leads to replacing the lost or damaged things with new things, and the first has a productive power greater than that of the second.
A means of forming capital
When the term comes or the insured risk occurs, the insurer is obligated to pay the insured the insurance amount, and this amount is paid from the total premiums paid by the insured. From this perspective, insurance is considered a type of savings, specifically compulsory savings, in which the insured is obligated to deduct a small portion periodically from his income, which is paid to the insurer, in exchange for obtaining the insurance amount when due. The capital formed by insurance companies from the total premiums of the insured is important for the insured as well as for the national economy. For the insured, this money accumulated by insurance companies represents a guarantee that their rights will be met by these companies. Therefore, the law obliges insurance companies to create reserves that represent one of the guarantees of fulfilling their obligations, and insurance companies invest this reserve, which ultimately achieves the interest of the insured. At the level of the national economy, the capital accumulated by insurance companies plays an important role in its development and prosperity. Insurance companies provide the national economy with the capital they accumulate by investing it in projects that benefit members of society. This money can also be given to the state or public individuals in the form of loans that help them achieve economic development goals. For example, the total direct premiums of insurance companies in the public and private sectors in Egypt for the fiscal year 1988/1989 amounted to about 541,317 Egyptian pounds, and in the United States of America, the capital available to the American Council for Life Insurance in 1982 amounted to about 528 billion US dollars.
Means of credit
Insurance functions as a means of credit at the individual level and at the state level as well. For individuals, insurance facilitates their access to credit through various means. Insurance strengthens the guarantee provided by the insured to his creditor, and thus facilitates his access to credit. If the insured mortgages a real estate or movable property owned by him as a guarantee to enforce his debts towards his creditor, there is no doubt that it is in the interest of the latter to keep the mortgaged money so that he can enforce it in the event of voluntary non-payment by the debtor. However, this money may be lost, stolen or destroyed by a specific accident such as a fire, for example, and the creditor's guarantee is lost. To avoid this result, the creditor often imposes on his debtor to insure the mortgaged item, against theft or fire, for example, so that if such a risk occurs, the insurance amount replaces the mortgaged item, and the mortgagee creditor can collect his right from the insurance amount. A person may want to obtain credit and does not have money to offer to the creditor as a guarantee, but rather relies on his work and effort to pay off the debt. In order to encourage the creditor to grant him credit, he can conclude a life insurance contract in favor of the creditor, so that if the debtor dies before paying off the debt, the creditor collects his right from the insurance amount. There is also insurance against the debtor's insolvency or credit insurance, whereby the creditor can insure himself against the risk of the debtor's insolvency, and guarantees himself through the insurance contract to collect what he cannot collect from the debtor. In life insurance, the insured can mortgage the insurance policy and provide this mortgage as a guarantee to pay his debts to his creditor, as each life insurance policy has a financial value in itself after paying a certain number of premiums, so that the beneficiary of this policy can borrow money from others with the guarantee of this policy, and if the debt is not paid, the creditor can obtain his right from the value of the policy. The insured can even borrow from the insurer himself with the guarantee of the insurance policy, and if he does not pay the debtor, the insurer deducts the debt from the amount due to the insured or the beneficiary under the insurance contract. In addition to the above, insurance is considered a means of credit for the state and its branches, which find in the capital accumulated by insurance companies from the premiums paid and their reserves an important source of borrowing through bonds issued by the state or public persons, which are purchased by insurance companies.
Protective factor
Preventive factor Although the direct goal of insurance is to compensate the insured for the losses he incurs, insurance plays another important role indirectly, which is to prevent risks and work to reduce the incidence of accidents by avoiding their causes and working to avoid their occurrence, so that it has become a preventive factor in society. Insurance plays this preventive role in various ways. Insurance companies, in their desire to limit compensation amounts to the narrowest limits, work in various ways to reduce the incidence of various risks and protect the insured from them. To achieve this, insurance companies often resort to forming joint associations between them in order to study the causes of risks and take sufficient precautions to prevent their occurrence. To this end, it seeks the help of experts and specialists to visit factories and homes to educate workers and citizens and guide them to ways to prevent accidents and reduce their rates. It also seeks help in this by sending brochures that explain the technical means of fighting fires or work hazards. As for traffic accidents, insurance companies often participate with other concerned bodies in raising awareness of traffic rules, calling for their adherence, and explaining the risks of not adhering to them. Many insurance companies also resort to various means to encourage their insured to take precautions and avoid the insured risk. This includes reducing the insurance premium if the risk does not occur within a certain period. For example, in car insurance, if several years pass for the insured without accidents occurring, the company reduces the premium by a certain percentage in the following year or exempts him from some of the premiums as a reward. In this regard, insurance companies may resort to charging the insured a percentage of the loss in order to encourage him to be careful and cautious, and so that he feels the loss that may befall him if he neglects to drive a car, for example, or to take measures to protect his home or factory from fire. In order to achieve this goal, some companies resort to involving the insured in the profit that the company achieves, which encourages him to be careful to avoid accidents.
