Insurance firms are companies that provide financial protection to individuals and businesses against potential losses. They collect premiums from policyholders in exchange for coverage, which can include health, auto, home, and life insurance. When a covered event occurs, such as an accident or illness, the firm pays out claims to help cover the costs. These firms assess risks to determine premium rates and coverage options. They use data and statistics to predict the likelihood of claims, ensuring they can remain financially stable while providing support to their clients. Risk assessment, premiums, and claims are key components of their operations.