An insurer is a company or organization that provides financial protection against potential losses or damages. They offer various types of insurance policies, such as health insurance, auto insurance, and homeowners insurance, which help individuals and businesses manage risks. When a policyholder pays a premium, the insurer agrees to cover certain costs in case of an unexpected event. In the event of a claim, the insurer evaluates the situation and determines the amount of compensation to be paid to the policyholder. This process helps individuals and businesses recover from losses, ensuring they are not financially burdened by unforeseen circumstances.