What is the primary purpose of non-life insurance?

The primary purpose of non-life insurance is to protect against financial loss from unforeseen events. This type of insurance covers various risks, including property damage, liability, theft, and accidents, ensuring that individuals and businesses have a safety net in place for unexpected situations. For instance, if a person suffers damage to their home due to a fire, non-life insurance would provide financial assistance to repair or replace the damaged property, mitigating the financial impact on the policyholder.

This insurance is fundamental in helping individuals and businesses manage risk and maintain stability in their financial planning. By offering coverage for potential losses, non-life insurance plays a crucial role in promoting overall financial security and peace of mind.