Insurance is a form of risk management that is used primarily to hedge the risk of accidental and uncertain losses in law and the economy. Insurance is defined as an equal transfer of the risk of loss from one entity to another instead of payment. An insurance company is a company that sells insurance. The insured or the policyholder is the person or organization purchasing the insurance contract. Insurance premium rates are main factors used to determine the amount charged for a specific insurance amount called insurance premiums. Risk management has evolved as a separate field of research and practice in practice to assess and manage risk. This transaction assumed a relatively small loss known to be guaranteed in the form of payment to the insurer in exchange for the guarantee that the insurer would compensate in the event of a huge probably catastrophic loss Insurers are included. The insured receives a contract called an insurance contract that details the terms and conditions and circumstances under which the insured is compensated.