What term describes an entity that provides insurance against losses or benefits?

The term that describes an entity providing insurance against losses or benefits is "insurer." This is a fundamental concept in the insurance industry, where the insurer is the company or entity that takes on the risk of loss in exchange for premium payments from policyholders. The insurer is responsible for fulfilling the terms of insurance policies, which may involve compensating policyholders for insured losses or providing benefits as outlined in the policy.

Understanding this term is essential, as it lays the foundation for recognizing the roles of various participants in the insurance process. For example, while policyholders are individuals or entities that purchase insurance coverage, the insurer is the one that issues the policy and assumes the financial risk. On the other hand, beneficiaries are individuals designated to receive benefits from a policy upon a triggering event, typically in life insurance, and underwriters are professionals who evaluate risks and determine the terms and pricing of insurance policies. Thus, recognizing the insurer as the correct term is crucial for understanding the basic framework of how insurance operates.