Critically consider the role of insurance law and practice in the Essay - 1

Critically consider the role of insurance law and practice in the regulation of international business transactions - Essay Example However, this investigation identifies the implication of such other dissimilarities; in which some are genuine, financial and social while others pertain to areas of the law diverse with contract law, especially to commonsensical regulation besides taxation. These dissimilarities comprise of: knowing your customer, language, consideration for the real risk suggested for cover, culture, plus prospects of the native policyholder, the prerequisite to handle local claims, the procedure and occurrence of scams, tax law environment, labor law environment, the lawful, monitoring and managerial environment, and international compensation options. This paper draws its arguments on expert knowledge and know-how by referring to statistical data except where unambiguously stated. Insurance is a universally known model that pronounces the act of protecting against risk that may befall the insured. The individual in quest of an insurance policy is called the insured while the firm that receives the insurance premium from the individual to cover a risk is referred to as the insurer. The price is referred to as an insurance premium which can be used by the insured to cover many risks. Insurance reinforces a healthy and successful society, empowering businesses and people to safeguard themselves against risk1. It is is not only essential for a distinct customer or entrepreneur but also has implications for the general economy, reinstating businesses to better conditions after natural catastrophes such as hurricanes and floods. In addition, insurance products and services are also vital in international business. Insurance undertakings include insurance, reinsurance and coinsurance, in addition to undertakings unswervingly related to insurance. These undertakings of insurance are well-thought-out to include insurance contracts, implementing insurance contract requirements and going through the procedures for prevention and reducing the risks involved