Let's start with insurance first.
an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.
This is the definition of insurance as everyone knows. This concept wasn't even known during the days of Mohammad. However , when it was introduced to the modern Muslims , Imams and Sheiks said it was forbidden because of this :
When you pay said specified premium , and the duration of the contract has ended , you do not get your paid amount back , if nothing has occurred. To them that would be paying money where it doesn't belong. That it is a form of loan with interest. That you pay an amount of money for no true benefit.
However , fifteen years ago , in Saudi Arabia , Insurance on cars was enforced due to the massive loses caused by car accidents. The Imams were forced to draw back their initial judgment , because car insurance provided a safe net in case someone fell victim for a car accident that they did not cause themselves.
And since then , all forms of insurance started to become the ' norm '. Is it forbidden? Nothing in the Qur'an directly specify that. But its a modern concept to Muslims so they relied on their Imams and Sheiks. But as you see , in the end the benefit of the society was chosen over a ' Modern Islamic rule '.
Now as for loans. Loans with interest are forbidden in Islam , period. But the Banks here practice many ways to go around that. For example, instead of loaning you money directly , they loan you cars that you can sell. And they provide the buyer , however , the buyer will buy the cars for a lesser price than the one you loaned it from the bank. So you still pay an interest , it was simply masked in someway to make it look ' legitimate'.
I hope this answers the questions?