Insurance can be termed as spreading of risk. The term of insurance spread Marine insurance in 1200 of farmers of Icelandic formed to encounter the risk, thereby ‘Insurance’ generated. It is a sharing of risk among people for the unforeseen accident. Such insurance strategy will not work out. Hence, the term of reinsurance was born to cover the diversification of security and risk. Socialist countries uses reinsurance markets to protect macroeconomic interests. In fact, reinsurance not only protects their interests of insurance but also protect the countries’ currencies.
The effective usage of data through internet and social media opened several opportunities to increase insurance business and created brand awareness of particular insurance products.
However, the threats in cybercrime are other side. Simultaneously the system of online peer-to-peer insurance encouraged. Besides, the purchase of insurance products by individuals transformed to groups of social networks. The increase of insurance industry opened various challenges to insurance companies and thereby the insurance companies rapidly made pressure on increase of competitive premiums for individuals as well as group persons. To counter the competitors, the existing insurance companies started to redesign the plans of insurance products for which individuals or groups of members will be benefited with a qualitative and competitive price. Addressing of consumer protection becomes inevitable to insurance companies. More or less the economy of the country witnessed positive change with the element of insurance industry.