Non-life insurance policies provide coverage to protect consumers against the risk of their insurance premiums. These types of policies are more common in European countries.
Insurance premiums, such as those that cover someone's life, home or car, do carry some risk for the consumer. While it covers the majority of expenses, there is still a risk that a person will have to pay some money if the person does need to file a claim against the insurance policy. Non-life insurance provides additional protection against this risk.
Non-life insurance can also be used to protect financial investments. It can ensure that assets are safely covered for investors. There are a number of regulations and guidelines pertaining to non-life insurance terms, all of which vary based on the customer's specific situation.