EXPLAINED Guide: General insurance and managing general insurance

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There are two main types of insurance: life insurance and general insurance.

Life insurance is often referred to as ‘assurance’ and pays a lump sum or regular payments if an insured event happens during the length of the policy. Life insurance companies sometimes provide pension schemes or may provide an insurance policy called an ‘annuity’. This provides a guaranteed income for the life of the annuitant or a reduced amount to a named beneficiary on the death of the annuitant.

General insurance protects the things people and businesses care about and want to protect. In some cases, businesses may have a legal or regulatory obligation to insure those for whom they have a duty of care; for example, employers have a duty to to provide insurance for their employees. General insurers sell insurance to protect against events such as fire, natural catastrophes or liabilities, and can be at the forefront of developing risk management solutions to help their customers understand and mitigate risks or to respond to emerging risks such as those relating to cybercrime and climate change.