What is insurance and why it matters

Discover what insurance is, how it works, and how Generali’s Lifetime Partner Ambition enables people to build a safer and more sustainable future, by caring for their lives and dreams

Understanding insurance

Insurance is a financial tool designed to manage uncertainty and protect against potential risks. It works by pooling resources from individuals with similar risk profiles to provide compensation in case of loss or damage. This concept has been fundamental to the growth of modern economies, enabling people and businesses to plan confidently for the future.

The origins and role of insurance

The idea of insurance emerged alongside the rise of mercantile economies. It played a crucial role in supporting the development of modern societies by facilitating free enterprise and individual progress, offering a safety net that encourages long-term planning and investment.

The core principles of insurance

The insurance industry is built on several foundational principles:

  • Economic security: ensuring financial stability in the face of unforeseen events.
  • Solidarity: risk is shared by distributing its cost among a group of individuals with similar exposure.
  • Trust and transparency: maintaining a fiduciary relationship between the insurer and the insured.
  • Prepaid protection: the insured pays a premium upfront, and the insurer provides compensation if a covered event occurs.

Types of insurance

There are many types of insurance policies, and they are consistent across countries, reflecting the universal human need for security and protection.

Discover more in the following sections:

Generali: nearly two centuries of innovation and protection

Founded in 1831 in Trieste, Generali has grown into one of the world’s leading insurance and asset management groups. Its origins are deeply rooted in the economic and cultural transformations of 19th-century Europe, where the need for financial protection and risk-sharing began to shape modern society.

Over nearly two centuries, as societies and economies have transformed, so too has Generali - adapting to new challenges, embracing technological advancements, and anticipating the changing needs of individuals, families, and businesses. This forward-looking approach has enabled the Group to remain a trusted partner - a Lifetime Partner - for all its stakeholders across generations and geographies.

Discover more about Generali's journey and milestones and all the initiatives dedicated to the Group’s 190th anniversary.