Definition: Insurance policy

SNA

An insurance policy is an agreement between an insurance corporation and another institutional unit, called the policyholder. Under the agreement, the policyholder makes a payment (a premium) to the insurance corporation and, if or when a specified event occurs, the insurance corporation makes a payment (claim) to the policyholder. In this way, the policyholder protects itself against certain forms of risk; by pooling the risks the insurance corporation aims to receive more from the receipt of premiums than it has to pay out as claims (§ 17.1).
Source:
European Commission (Eurostat), International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), United Nations (Statistics Division), World Bank, "System of National Accounts 2008", United Nations, New York, 2009
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