What is the primary role of an insurer?

The primary role of an insurer is to sell insurance contracts. This function is essential as it enables individuals and businesses to transfer their risk to the insurer through a contractual agreement, known as an insurance policy. By selling these contracts, insurers provide coverage for various risks such as property damage, liability, and other unforeseen events.

The process involves assessing the risk associated with insuring an individual or entity and determining the appropriate premiums to charge for the coverage provided. This also allows the insurer to pool risks from many policyholders, enabling them to manage and pay out claims when necessary.

While auditing insurance claims, regulating the insurance market, and providing financial advice are important activities within the broader insurance ecosystem, they do not define the core function of an insurer. Auditing claims relates more to ensuring accuracy and fairness in the claims process, regulation typically falls under government entities or regulators, and providing financial advice is often the role of financial advisors or brokers, rather than the insurers themselves.