Insurance
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Insurance in law and economics is a form of risk management. Its main use is to hedge (an investment that is only taken out to reduce or take away the risk of something else) against the risk of possible financial loss. Insurance is defined as the equitable transfer of the risk of a loss that could happen, from one entity to another, in exchange for a premium (normally money paid) and duty of care (being careful).
Actuaries are the people who work out how much the premium should be. They balance who much the insurer might have to pay out against the chances of having to pay out