The insurer is the party to the insurance contract who provide cover to the insured. The insurer is also known as the insurance company. The focus of the insurance industry is the safeguarding of people against financial loss due to death or injury, loss and/or damage to property. The insured pass the risks they face to the insurer in return for a payment called the insurance premium.

Sometimes there is more than one insurer involved and the policy will then make reference to the term insurers. In the schedule of the policy the percentage liability that each insurer accepted will be listed individually.

Insurance companies are operating as a profit-making business and therefore they will only accept the risks that they can insure at a profit. The insurance industry in South Africa is highly regulated in terms of law. All insurers must be registered with the Financial Services Board, will receive a license to operate and are subject to its rules and regulations. There are very strict financial controls in place to monitor the financial stability of insurance companies.

The Insurance Ombudsman provides a vehicle for insured parties to lodge complaints against insurers in the case of unresolved claims or alleged unfair treatment. Insurance companies have to accept the findings of the Ombudsman’s office.

The internet has changed the way in which insurers conduct their business. All insurers have web sites where you can obtain information on insurance or even apply for insurance online. An internet insurer is an insurer that conducts his business exclusively on the internet.