Influence of insurance on economic development
Insurance is the statement or policy in which person gets financial protection from an insurance company against any loss. In general, it serves a lot to the economic growth of the society by providing financial security against any unwanted loss. It contributes for the financial or economic growth of any society and its influence or importance is increasing day by day.
Many insurance companies like Ocean Harbor Casualty Insurance are working to reduce uncertainties by providing financial resources. Now here we discuss the beneficial influence of insurance companies or policies on economic growth of any country.
• Every person wants safety and security of his or her life and different things like cars, etc. this element is the basic security or protection any insurance company provides. This type of security benefits person if any unwanted event occurs and he or she is mentally free of hesitation from this side’s loss.
• Insurance companies invested funds in government stocks and securities. These funds generally employed for the industrial development which benefits in terms of economic growth of any country.
• Life insurance is the type of systematic savings by any person. It is the habit of saving in person is free from any hesitation regarding its family protection after his or her death. This type of insurance encourages person’s savings.
• Medical insurance is another type which is essential in many industries and it benefits in any unwanted medical situation. It is the insurance policy which caters different types of health risks. It is a kind of medical support of any person.
• It helps to make business safer. It helps in making awareness of risks that could happen in daily operations and hence to become safer, industries manage some safety programs to create safety awareness in workers. These things are beneficial for industries and as well as for insurance companies and in short for economic development of any country.
• An insurance policy allows inventories or buildings to rebuild in the place of a catastrophe such as earthquake or hurricane or tornadoes.
• Many products are purchased or sold if adequate or particular liable insurance is available. This thing promotes safer business sales and purchased and hence helps to improve economic growth of any country.
• Claiming results persons to restart their business from the new end. Millions of claimers gain their lost money. A U.S insurance industry pays almost or more than $ 300 billion in claims or in policy benefits.
• Insurance companies and their employs tax that funds the government to run many needy programs like education, maintenance of infrastructure, etc. insurance companies have the biggest impact on country’s stock exchange.
Although it is considered that insurance policies are beneficial for the economic development of any country. The above-discussed points are the keys areas which are positively affected by insurance