METHODS OF INSURANCE

According to the study books of The Chartered Insurance Institute, there are variant methods of insurance as follows:

1. Co-insurance: risks shared between insurers (sometimes referred to as "Retention")
2. Dual insurance: having two or more policies with overlapping coverage of a risk (both the individual policies would not pay separately, under a concept named contribution, they would contribute together to make up the policyholder's losses. However, in case of contingency insurances such as life insurance, dual payment is allowed)
3. Self-insurance: situations where risk is not transferred to insurance companies and solely retained by the entities or individuals themselves
4. Reinsurance: situations when the insurer passes some part of or all risks to another Insurer, called the reinsurer