Insurance
Insurance protects people and businesses against losses they could not afford alone. Many people each pay a small premium, and the money pays for the few who suffer a loss. Paper 1 asks what the regular payments to an insurer are called (premiums) almost every year.
By the end of this page you can
- Explain how insurance pools risks
- Match a risk to the right type of policy
- Explain the seven principles of insurance
- Explain how insurance helps trade
Goals tick themselves off as you try the activities below.
Photo: Miroslav Bekchiv, CC BY-SA 4.0, via Wikimedia Commons. Cropped (a crane with a company name cropped off), resized, JPEG q72.
A fire like this could ruin an uninsured owner. Fire insurance spreads the cost over many policyholders.
How often it shows up in past papers
All papers19 of 23 papers
Last 54 of 5 · 2023–2026
Paper 1 counts come from our past-paper bank of CSEC Principles of Business Paper 1s. The last-5 row shows how often it came up in the five most recent papers.
Inside this topic
- How insurance worksLocked
- The principlesLocked
- Key termsLocked
- Test yourselfmarkedLocked
- Practise for real · 16 past questionsLocked