From the renaissance period itself the insurance industry has evolved and expanded over time and today it is a huge business that most businessmen cannot survive without. It helps economic growth tremendously and provides certainty and assurance for businessmen for the smooth and continuous functioning of their business. Not only for businessmen, it provides many uses and benefits to individuals and the society at large as well. This article provides a brief insight to the insurance industry and its contribution towards economic development.
Security and safety
The holder of a policy do not have to worry about any loss covered under the policy as such losses are compensated by the insurer. Under property cover, all damages that can be caused to property due to theft, fire or natural disasters can be compensated and businessmen and individuals are assured of continued business and activities. Even when it comes to life insurance, the dependents of an individual are compensated at a time of death or under health cover the policy holder is compensated at a time of hospitalization. Other types of insurance such as School liability insurance, product liability and motor insurance also provide safety and security to its holders.
For businessmen, as the burden of the possible losses that can be caused due to external factors are eliminated with the use of insurance, they can concentrate more on increasing their business activities and operations and hence the level of efficiency within the business will increase. Businessmen will try out new things and enter new fields and avenues as their risk is reduced through insurance. Businessmen will be able to obtain credit facilities using the insurance cover as collateral whether it be a cargo, theft, life or a School liability insurance.
Life insurance is a form of saving
In most of the property insurance policies the savings feature is not available. But all life insurance policies are forms of savings. At the termination of an assurance policy, the entire amount of the policy can be obtained whether the insured party faces the injury or loss or not. This is an advantage of assurance as it is not only a form of mitigating risk but also a form of saving. On the other hand these certain policies such as endowment policies, multipurpose policies and differed annuities are great fields of investment.
Through insurance service, the wealth of the people in a society are protected. The buildings and property are secured and also as it is a form of saving and investment the society is provided with an opportunity to maximize their earnings, also there are ample amounts of jobs available in the industry and through this the unemployment level s and inflation levels in the economy can be reduced.