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INSURANCE COMPANIES AND THEIR IMPORTANCE TO ECONOMIC DEVELOPMENT — Economics Keypoint

INSURANCE COMPANIES AND THEIR IMPORTANCE TO ECONOMIC DEVELOPMENT

Insurance companies play a lot of roles in the development of the economy of a nation through the following ways.

  1. Provision of funds for capital projects.
  2. They equally invest some of their funds in stock development.
  3. They sometimes go into direct business ventures singlehandedly or in conjunction with other firms.
  4. They also provide job opportunities to people in the society
  5. They also encourages industrialist to invest in big business ventures.
  6. They also soften the effects of financial losses to businessmen.
  7. They also provide vital service to commerce and industries. 
  8. They help in covering a lot of risk for millions of individuals.

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