A company that sells insurance policies to an individual for suitable protection against adverse events. These companies are charaterised by long-term liabilities of uncertain vaue and liquid value-certain assets. Among the major categories of financial institution, this balance sheet structure is least likely to give rise to systemic risk, as asset transformation function in the reverse direction of banks. However, the main form of regulation imposed on insurance companies is based on consumer protection, reflecting the fact that it is difficult for consumers to assess an insuree's financial strength or the quality of its products.