Answer:
Insurance is an obligation of the insurer, confirmed by the insurance contract of the insurer with the policyholder, who arranges insurance for the benefit of the insured, towards the insured to mitigate the impact from the specified negative "loss event". The insurance only covers certain, pre-agreed insurance events that occur with a certain estimable probability. As such, the insurance does not affect the risk of the event or any damage, but only mitigates their impact.