Carinsurance

The insurance, legally and of the economic scenes, is a form of risk management mainly employed to protect itself from the risk from a contingent loss. The insurance is defined like equitable transfer of the risk of a loss, starting from an entity with the other, in exchange of a premium. An insurer is a company selling the insurance. The rate of insurance is a factor employed to determine the quantity, called the premium, to be invoiced a certain quantity of insurance of insurance. The risk management, the practice of the evaluating risk and control, evolved/moved like discrete field of studies and the practice.
Insurance companies also earn investment profits on “float”. “Float” or available reserve is the amount of money, at hand at any given moment, that an insurer has collected in insurance premiums but has not been paid out in claims. Insurers start investing insurance premiums as soon as they are collected and continue to earn interest on them until claims are paid out.

In the United States, the underwriting loss of property and casualty auto insurance companies was $142.3 billion in the five years ending 2003. But overall profit for the same period was $68.4 billion, as the result of float. Some insurance industry insiders, most notably Hank Greenberg, do not believe that it is forever possible to sustain a profit from float without an underwriting profit as well, but this opinion is not universally held. Naturally, the “float” method is difficult to carry out in an economically depressed period. Bear markets do cause insurers to shift away from investments and to toughen up their underwriting standards. So a poor economy generally means high insurance premiums. This tendency to swing between profitable and unprofitable periods over time is commonly known as the "underwriting" or insurance cycle.