Insurance is a system of-

Insurance a system of spreading the risk of one to the shoulders of many. It is a contract whereby the insurers, on receipt of a consideration known as premium, agree to indemnify the insured against losses arising out of certain specified unforeseen contingencies or perils insured against.

Insurance is a means of protection from financial loss.

It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.

The amount of money charged by the insurer to the policyholder for the coverage set forth in the insurance policy is called the premium.