People turn to insurance companies; To benefit from the amount that these companies offer them as compensation for some of the dangers they are exposed to, such as burning their homes, exposing them to theft, or in cases of illness, infirmity, and others, and these companies are considered one of the most important economic sectors these days, and since the topic of the article revolves around insurance It is necessary for us to define it clearly, as insurance is defined linguistically as security, reassurance, and the removal of fear, while the legal definition of it is summarized as a contract whereby the insurer pledges to compensate the losses that the insured is exposed to, in exchange for a cash amount Insurance), and insurance companies have emerged; To achieve the desired goal of insurance for people, and they are defined as commercial companies that receive amounts from their subscribers, either directly, such as some life insurance cases, or indirectly, by paying the insurance premium, and they in turn invest these funds, like the idea of commercial banks. Dual role; It receives money, invests it, and pays it to subscribers in the event that the risk is realized.
Insurance appeared in its current form since the 19th century AD, but its origin goes back to ancient times. The ancient Egyptians used to pay a socialist sum; To secure the cost of burying them and embalming them, as the Arabs used to cooperate in the past. To provide insurance for those who suffer losses during his commercial trips, and with the beginning of the twelfth century AD, insurance began to take the form of gambling and wagering; They were entering into the so-called (marine loan contract), which includes an amount of money that the ship owner takes, and if he returns intact, he returns it to his owner with exorbitant interest, but the idea of insurance changed with the beginning of the 14th century AD and became based on the idea of cooperation instead of gambling.
Types of insurance companies
Insurance companies take a general characteristic of being financial institutions. They are classified into two main types: insurance companies according to the assortment of insurance activities, and according to the legal form, and what follows a breakdown of each type.
According to the insurance activities
Companies implement insurance on various aspects of life, and each company specializes in the quality of these insurance activities that they provide, as they can be classified into 4 types, namely:
Life insurance companies: These companies are interested in providing insurance to the subscriber in relation to his life or death, and some offer both types, so they are called mixed insurance companies.
General insurance companies: These companies specialize in insuring the subscriber’s property, providing compensation in cases of fire and theft, as well as insurance on all types of transport, in addition to providing insurance on subscribers’ civil liability against others, such as in car accidents.
Social Security Funds: These companies specialize in the therapeutic aspects of the subscriber. Because when the participant needs treatment, he pays a small amount, and the insurance company pays the remaining costs of treatment.
Comprehensive companies: where these companies ensure life and death, and provide insurance on property, transportation, against others, and treatment; These companies are considered comprehensive to the previous three types of insurance companies.
According to the legal form
Insurance companies are classified according to the legal form into two types, namely:
Joint-stock companies: These companies are formed by the shareholders, and their ownership belongs to them, so they benefit from the profits that the company achieves, and they also assign a board of directors to take over the company’s affairs and run its affairs.
Fund companies: These companies differ from their predecessors in that they are large and without shares; The companies are owned by insurance policy holders, and a team of specialized experts is assigned to manage the company.
Principles of insurance companies
Insurance companies follow a set of principles that they adhere to while providing service to a customer; In order to preserve customers, and attract other subscribers to the company, some of these principles guarantee non-loss to insurance companies, and the system of principles is based on technical and objective legal foundations. To make the partnership safe for both parties, and these principles are: 
The principle of good faith: This principle is intended to provide the company and the customer with all the essential facts, and not to make misleading facts. Among the most important fundamental facts that may increase the risk, and which must be disclosed, are the following:
A comprehensive description of the thing to be insured.
Show any documents that offer insurance against the same risk.
Provide a breakdown of previous insurance losses and claims.
Clarify the behavior of the customer, or any facts that may expose the insured thing to a risk higher than the normal rate.
The principle of the insurance interest: that the person who receives the insurance benefit is the one who is exposed to financial loss at the time of the damage to the insured thing, and the insured thing is subject to the principle of the insurance interest if it is the property of the client, or his trustee, or a tenant for him.
Compensation principle: The compensation principle is based on the idea of returning the insured to his previous financial condition, and to achieve this, the customer must determine the actual value that he lost after suffering the loss, and compensation can be provided to the customer in several ways, including:
Cash payment by the company to the customer, which is often the most convenient method.