Insurance is a service sector that centers on the commodification of risk.

Question

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Insurance companies provide their customers with protection against unforeseen losses, such as accidents or illnesses. Customers pay premiums to shift the risk of financial loss to the insurer. As such, insurance acts as a way to commodify risk, which is the process of turning the uncertainties of life into predictable and manageable financial costs.

Insurance Is a Service Sector That Centers on the Commodification