A Review of Insurance Products in United Kingdom

Abstract

The emergence of insurance was associated with the desire for a sense of security and safety, which are the hope that haunts man since the beginning of creation. In fact, insurance was born as a cooperative idea through a group of individuals, in cooperation with each other. This is to bear the harm that befalls one of them in return for their participation in variable cash shares, which together constitute the capital from which enough is deducted to redress the damage in order to find a means to mitigate the effects of disasters and dangers (Burling et al, 2018). Then, insurance soon came out of the framework of this cooperative idea to a large scale seeking to find a way in which a person can manage various risks and find a practical way to enable him to compensate for the losses that may befall him (Burling et al, 2018). New types and divisions of insurance have emerged, and specialized companies have appeared in the insurance sector. This is due to the fact that insurance has become an important part of economic activity in contemporary life and a fundamental pillar of the national economy, and with it the person has been able to insure himself from the damages that afflict his financial liability as a result of achieving his civil responsibility towards others through civil liability insurance (Chambers, 2006). That type of insurance that emerged as a result of the massive industrial development, the spread of modern machines of all kinds, the increase and expansion of human activity, and the accompanying emergence of new reasons for the holding of responsibility, the expansion of its scope and the development of its legal bases, so that a person is asking about actions he did not ask about in the past (Chambers, 2006). These factors combined led to a person's reluctance to carry out his activity as long as that activity would cause his financial liability to suffer a financial loss when he is obligated to compensate others. Consequently, liability insurance emerged as the best 6 way for a person to remove the burden of responsibility from his shoulders and to carry out his activities in safety and reassurance. Human progress depends mainly on production, which represents the outcome of the human effort. This is in order to exploit economic resources and transform them into goods and services. Here, the role of insurance emerges in providing guarantees for the capital and its continuation and preservation from total or partial damage in performing its role in the production process (Burling et al, 2018). Insurance is a cooperative idea that mainly distributes the loss resulting from the accident to a large number of economic units. Thus, the greater the number of economic units insured, the loss resulting from the accident, the less its relative importance to society and the insurance company. As for the individual, it is found that it is a cooperative idea whereby a group of individuals exposed to a certain risk cooperates in bearing the loss resulting from the realization of a certain risk for some of them. This leads to a direct effect represented in distributing the risk to a large group of individuals, and each individual bears a small part of the loss. Consequently, reducing the burden of loss in economic terms in addition to the indirect effect of providing safety for members of society with regard to the future, and thus the productivity of the individual and society as whole increases.