Distribution function of insurance sold through specific functions peculiar only to insurance: Risk, helpful and savings.
Risk function - a risk of stimulating the emergence of insurance. There is a risk - there is a potential for the insurance with all its attributes, its manifestations. In this case, the risk - this particular event or set of events, the potential for damage to the insured object.
By its nature, risks are divided into the following categories: subjective and objective, universal and individual, catastrophic, environmental, transportation, political, military, technical, etc. The variety of forms of risk, severity of damage, the impossibility of accurately predicting their occurrence objectively cause the need for insurance. It is in the framework of the risk function and the redistribution of the money form of value between members of insurance in the aftermath of an emergency insurance event.
Insurance warning function is implemented to reduce the risk and the devastating effects of the insured event. Through funding from the insurance fund various activities to prevent, contain and limit the negative effects of disasters, accidents and accidents. In order to fulfill this function, form a special cash fund.
Saving function manifests itself in the need for insurance protection money savings of the population, accumulated in commercial banks.
In addition to these specific functions of a monitoring insurance, credit and investment functions.
The control function is strictly target the formation and use of the insurance fund. The implementation is made through financial control over the legality of the insurance operations.
In credit insurance function is repayment of premiums.
Insurance investment function allows participation temporarily free of the insurance fund in the investment activities of insurance companies, to supplement the expense of profits from insurance and other business transactions revenues in the state budget.