Insurance is not what we do now, it has old and long history. The Chinese traders, traveling via sea would distribute their goods among several vessels, so that the loss from any one vessel being lost , would be partial and shared, and not total.
Assets are insured , because they are likely to be destroyed or made non-functional before the expected life time, or maybe through accidental occurrences called perils. Fire, flood , breakdowns earthquakes etc are perils. The risk states that there is a possibility of loss or damage. There should be an uncertainty about the risk. Insurance is relevant only if there is uncertainty. In case of human being the death is certain, but the time if death is uncertain. And insurance doesn’t protect the assets neither it prevents loss due to any peril. Perils can’t be avoided through insurance. Insurance only helps to reduce the ramification of the risk on the owner. Insurance only compensates for losses – and that to not fully.
Now, concepts of insurance should be well understood for those who really seek for them. In this fast changing world where fraudulent practices are immense one must be very clear in the terms and conditions of any insurance he selects.