The Role of Insurance Companies and Real Estate Investment Trusts in Assignment

The Role of Insurance Companies and Real Estate Investment Trusts in Serving the Individual, Industry and the Property Market - Assignment Example Insurance is the increasing necessity of today’s life. Insurance companies are the best and the only place that can offer insurance. The increasing importance of the insurance companies can be realized by the fact the increasing role that insurance companies are playing in the lives of the individuals, industry and the market. The role of insurance companies can be categorized as hedging risk and capital formation. Insurance companies are a big help in hedging many different types of risks that can result in minimizing the losses. Another role of an insurance company is to provide and mobilize resources for the development of any country’s economy. The function of any insurance company is to provide insurance to protect individuals, the industries and the markets against losses that they can not afford. The insurance company does this by transferring the risks of the individuals, industries, business and so to itself. The company then reimburses the affected individual for the losses mentioned in the policy or the agreement. In today’s fast-paced world, where there is no time for the individual to look after their health and lives, insurance companies come to aid. How? The need for people to protect themselves against different risks that life offers, the insurance company provides a vast range of products that cater to the needs of different individuals. Some of the products that insurance company offers are health insurance, life insurance and so on. The need for the type of insurance depends on the people and their needs. Like pointed out before, life is full of unexpected surprises. These surprises can either lead to financial profits or financial losses. For instance, whenever anyone drives, there is always a possibility of running into a severe accident either accident of an individual’s life or that of the property.