Final answer:
In the insurance industry, money flows in from premiums and investments and out through claims, expenses, and profits or losses. Agents, customers, underwriters, and insurers play specific roles in the transaction flow.
Step-by-step explanation:
The flow of transactions in the insurance industry typically involves a sequence where different parties interact with one another. In general:
- Customers or policyholders pay premiums to insurers.
- Agents act as intermediaries between customers and insurers.
- Underwriters assess the risk and determine the terms of insurance policies.
Money flows into an insurance company primarily through premiums collected from policyholders and investments. Money flows out of the company through payments to customers ('claims'), expenses related to the operation of the business, and any profits or losses. Government programs can function like private insurance but might not have an explicit fund set up, covering members who suffer adverse experiences from steady payments made by the group.