6.16. Internet insurance. Internet exchange

Internet insurance is currently a frequently used online financial service.

Insurance is the process of establishing and maintaining the relationship between the policyholder and the insurer, which are enshrined in the contract. The insurer determines the various options for insurance programs offered to the policyholder. If the client chooses any insurance option, then both parties enter into an insurance contract. From the beginning of the validity of the insurance contract, the policyholder undertakes to pay lump-sum or regular sum of money determined by the concluded agreement. In the event of an insured event, the insurer must pay the policyholder monetary compensation, the amount of which was established by the terms of the insurance contract. An insurance policy is a document that certifies the conclusion of an insurance contract and contains the obligations of the insurer.

Internet insurance is a complex of all the above elements of the insurance company and its client relations arising in the process of selling an insurance product, its maintenance and payment of insurance compensation (using Internet technologies).

Internet insurance services include:

1) filling in the application form, taking into account the selected program of insurance services;

2) order and direct payment of the insurance policy;

3) calculation of the insurance premium and determination of the conditions for its payment;

4) the implementation of periodic insurance payments;

5) maintenance of the insurance contract during its validity period.

When using Internet technologies for insurance companies, the client receives the following benefits:

1) reduction of capital costs in creating a global service distribution network;

2) a significant reduction in the cost of providing services;

3) the creation of a permanent customer base of the most active consumers.

Internet exchange is a platform through which the state, legal entities or individuals trade in goods, services, stocks and currency. The electronic trading system is a central server and local servers connected to it. Through them access to trading platforms is provided to participants of trade. The advantages of the Internet exchange include the external simplicity of concluding transactions and reduced tariffs for the services of on-line brokers. The investor can use the advice of a broker or do without them.

Internet exchanges perform the following functions: 1) timely provision of necessary information to bidders; 2) the organization of trade in goods between enterprises; 3) automated process of payment and delivery of goods; 4) cost reduction.

Among the well-known Internet exchanges are the following: oil exchanges, markets for agricultural products, the market for precious metals, stock markets, foreign exchange markets.

The main segments of the global financial market include the precious metals market, stock and currency markets.

Commodities in stock markets are stocks of various companies. Commodities in the foreign exchange market are currencies of various countries. The foreign exchange market in comparison with the securities market has a number of significant advantages: 1) trading in the foreign exchange market can be started with a small initial capital; 2) in the foreign exchange market transactions are carried out according to the principle of margin trading; 3) the operation of currency exchanges occurs around the clock.

A trader is a natural or legal person who performs transactions on his own behalf and at his own expense, the profit of which is the difference between the purchase and sale prices of a commodity, stock or currency.