What is the primary purpose of general insurance?

The primary purpose of general insurance is to provide financial protection against risks of loss or damage to property or liability. This aligns with the fundamental principle of insurance, which is risk management. General insurance covers various types of non-life insurance, including property insurance, liability insurance, and vehicle insurance, among others.

When a policyholder purchases general insurance, they are essentially transferring the financial risk of unforeseen events—such as fire, theft, or accidents—to the insurer. This means that in the event of a claim, the insurer will compensate the policyholder for their losses, thus providing peace of mind and financial security.

The other options concern different financial objectives that fall outside the primary function of general insurance. For instance, investing in capital markets focuses on wealth growth and is not the primary aim of insurance. Moreover, offering health benefits pertains to health insurance rather than general insurance, and funding retirement savings plans relates to life insurance products and pensions. Therefore, while these options represent important aspects of the broader financial services landscape, they do not encapsulate the core purpose of general insurance.