What is the definition of an insurer?

The definition of an insurer is accurately represented as a company or agency offering financial protection. This refers to organizations that provide insurance policies, which are contracts designed to provide compensation for specific losses or damages, thereby offering a safety net to policyholders against unforeseen risks. Insurers operate by collecting premiums from policyholders and using those funds to cover claims when an insured event occurs, which emphasizes their role in managing risk and providing financial security.

The other choices do not adequately define an insurer. One option mentions a business charging for financial advice, which pertains more to financial services rather than insurance coverage. Another option describes an individual client purchasing coverage, reflecting the role of a policyholder rather than that of the insurer itself. Lastly, a group of investors pooling money might refer to investment or mutual funds, but it does not specifically relate to the function of an insurance company, which is centered around risk management and financial protection through insurance products.