Insurance Insurance is a guarantee against financial loss. Insurance policies can be bought for all sorts of things. The most common kinds of insurance include life, health and property. For example, an insurance company will pay to repair or replace the property if it is damaged or stolen. How much a company will pay in the event of a claim depends on how much insurance the policyholder has bought. The amount may also depend on the conditions that led to the damage. There are two main kinds of insurance companies. Insurance carriers provide insurance to individuals, groups and businesses. Reinsurance companies help reduce the financial risk to carriers. These are insurance companies for insurance companies.