What is the function of an insurance provider?

The function of an insurance provider is to offer financial protection against healthcare costs. This role encompasses the assessment of risk and the provision of policies that cover various medical expenses incurred by policyholders. Insurance providers collect premiums from clients, which create a pool of funds used to pay for covered healthcare services when members need them. This mechanism not only alleviates the financial burden that can arise from unexpected medical events but also promotes access to healthcare services by ensuring that individuals can afford necessary treatment without incurring prohibitive costs.

Other roles, such as directly providing medical treatment or managing healthcare facilities, fall outside the primary function of insurance providers. While they may collaborate with healthcare providers or offer services that could involve recruitment efforts for brokers, the core mission remains to safeguard individuals from the financial risks associated with healthcare. This contractual relationship fosters a preventive approach to health management, making healthcare more accessible and financially manageable for individuals and families.