The UK insurance market is vital for the economy, providing protection from risks for businesses and individuals. Insurance is a promise to pay if something goes wrong, transferring risk from the insured to the insurer. Insurers charge premiums based on the level of risk they take on. Insurance is intangible, with only a policy document as proof of purchase. Insurance companies take on risks, while intermediaries like brokers and financial advisers sell or advise on policies. Insurance helps manage the negative effects of risk in our lives.