Insurance is a financial arrangement that provides protection against potential future losses or damages. It involves a contract, typically called an insurance policy, between an individual or entity (the insured) and an insurance company (the insurer). The insured pays a regular fee, known as a premium, in exchange for coverage that compensates for specified risks, such as accidents, health issues, property damage, or liability claims.
Insurance operates on the principle of risk pooling, where many participants contribute to a fund that covers the losses of a few. This mechanism helps distribute the financial burden of unforeseen events, enabling individuals and businesses to manage risks more effectively. There are various types of insurance, including life, health, auto, property, and liability insurance, each serving different purposes and covering distinct risks.
Overall, insurance provides peace of mind, ensuring that individuals and organizations are safeguarded against significant financial setbacks that could arise from unexpected incidents.
In a significant shift towards digital healthcare, Japan's Ministry of Health, Labour and Welfare is exploring initiatives to enhance the adoption of the "My Number Health Insurance Card" through smartphones.…