Insurance is a financial arrangement that provides protection against potential future losses or damages. It is a contract (called a policy) between an individual or entity (the insured) and an insurance company (the insurer), where the insured pays a premium in exchange for the insurer’s promise to cover specific risks. Insurance can cover various areas such as health, life, property, auto, and liability.
The primary purpose of insurance is to mitigate the financial impact of unforeseen events, like accidents, illnesses, or natural disasters. When a covered event occurs, the insured can claim compensation or benefits from the insurer, which helps to ease the financial burden that may arise from that event. Insurance operates on the principle of risk pooling, where many individuals contribute premiums to a common fund, allowing the insurer to manage risks and pay out claims when necessary. In essence, insurance provides a safety net for individuals and businesses, allowing them to manage uncertainty and financial risks associated with life’s unpredictable events.
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.…