This video simplifies the concept of insurance as a means of sharing financial risk among a large group of people.
- Insurance is a financial risk-sharing mechanism among a large group.
- Monthly premiums are pooled to cover costs for members who incur losses.
- This system enables individuals to have substantial coverage without the need for large out-of-pocket expenses in the event of an accident.
- The example of car insurance demonstrates the practical application of insurance principles, highlighting its benefits in providing financial security.
