Need for property insurance

     

      Property insurance is the major element of economic relations, the most effective way of compensation of a damage, the original form of a payment for risk. The risk is an uncertainty of the future fear not to reach an object in view. In market economy of concept "risk" and "insurance" inseparably linked. Property insurance is necessary mainly in an uncertain dynamical economic situation.

      Firms as economic subjects always aspire to protect themselves from losses and superfluous expenses as work on maximization of profit and expansion of own influence on a commodity market and services. Therefore they resort to property insurance that allows them in a crisis situation under absolutely unforeseen circumstances to survive.

      Necessity for property insurance arises in that case when the probability of occurrence of risks is very high that can be caused both general economic "shake-ups", and a high competition. Besides insurance, the firm should provide itself to itself development. It should work on the consumer and with the maximum accuracy to react to changes in its preferences.

      Otherwise there is no sense in its creation, competitiveness appears inaccessible. Thus, important line of insurance activity consists that the enterprise risk connected with process of manufacture and its scales is inherent in it.  Insurance relations are characterized by requirement of firm for protection against losses by Object of insurance of property in this case manufacture factors, production assets of the enterprises, and also life and working conditions of workers can be.

      A role of insurance of a bycicle: it allows to provide a continuity and stability of public reproduction. Therefore development of business, the market and business in any state means presence of insurance services.  The economic essence of insurance of property can be defined through its category which expresses socially-relations of production between subjects of economic activities concerning prevention and overcoming of brave situations.

      The main feature of insurance consists that it to the signs is close to a financial category. Insurance relations are closed, i.e. the number of insurance agents is less than number of victims. For realization of insurance transactions the insurance fund consisting of monetary payments of insured persons is created. The closed relations of participants of insurance mean as well a reflexivity of insurance payments in the form of indemnification in case of occurrence of threat of risk.

      The reflexivity principle pulls together concepts of insurance and the credit and reminds, as a matter of fact, process of delivery of loans by banks and other credit-and-monetary institutes. Credits stand out under percent and with an indispensable guarantee of their return to cash desks of the credit organizations. It provides the normal reference of monetary weight in the country.