What does an insurer provide?

An insurer is fundamentally defined as a company, group, or government agency that provides financial protection against potential risks. This encompasses various forms of coverage, such as health, property, liability, and life insurance, where the insurer agrees to compensate the insured for specific losses in exchange for premium payments. The main function of an insurer is to mitigate the financial impact that certain unforeseen events—such as accidents, illnesses, or natural disasters—can have on individuals or businesses.

This definition underscores that the primary role of an insurer is not just about managing risks or offering services related to risk management; it's about providing financial safety and security to policyholders through insurance policies. The other options may involve aspects of what insurance entails, like managing risk or being part of the financial management process, but they do not encapsulate the central role of an insurer as effectively as the concept of financial protection does.