The insurance activity has an important place in the production of services due to the volume of resources it moves and the important function it undertakes; it can be classified from the perspective of supply and / or demand:
- The supply is associated with the insurance company that has to face the important challenges that are related to the activity. The provision of the service is based on the assessment of a segment of the risks of possible occurrence and it materializes in a contract with stipulated conditions.
- On the demand side, it is made up of consumers or insurance clients (policyholder, insurer or beneficiary) who need to cover a risk and, to this end, are willing to pay a premium.
As in other markets, insurance companies are responding to the new requirements from the demand side, adjusting products to new risks and the needs that arise. This change includes a transformation of internal organizations that has a tendency to get closer to the customer by improving service and quality.
The quality and public image of the insurance company are determining factors that the client will take into consideration when choosing the insurance company and the most suitable products. Insurance provides the security that human beings need, in addition to being a financial investment.
Exchange relations are revealed in the market, linking needs, desires and resources of the participating agents: Companies (supply) and customers (demand). The goal in market economies is the development of activities aimed at facilitating voluntary and competitive trade in products and services. Therefore, the aim is to satisfy the most beneficial joint needs for all the agents that interact in the market.
There are different criteria to differentiate the insurance market; we can classify them according to these criteria: The territorial scope, the insurers and the risk characteristics.
According to the territorial scope:
- Agricultural and rural market.
- Urban and suburban market.
According to the insurers:
- Societies and Mutual Societies.
- National, Regional or Local Insurers.
- Specialized insurers.
According to the risk characteristics:
- Agricultural.
- Commercial.
- Industrial
- Personal risks.
