Insurance has any functions and significance to us. Insurance is regarded as a way of protecting the interest of people from loss and uncertainty. We can also take the insurance to mean the process through which the risk relating to the properties and life is eliminated and the process, in this case, is social. The the insurance company can be seen to have a very significant role in the protection of the assets and property of the people at all levels.
One of the key roles of the insurance company is to provide security and safety to the clients. The insurance clients provide security to the clients by being able to provide financial security to the clients regarding a particular asset that had been insured. For example the people who work in the fire-prone areas can be protected against fire. Some of the calamities that the insurance companies can undertake to ensure include the floods and the disease calamities and also the accidents.
Working to generate the financial resources is one of the main benefits of the insurance companies. The insurance companies generate income from the premiums paid by the clients. The funds are invested in government securities as stock. The premiums have the effect of increasing the general operating profit of the insurance company.
This is very effective to the country as this development leads to the development of the economy. The profit that is gained is invested in various sectors.
One of the crucial ways of encouraging saving is by a company being able to ensure itself. The insurance encourages people to save more. This is by mainly being able to indemnify the people from the risks that they were likely to suffer from. People taking the endowment policy is one of the ways of investing. The person is able to benefit if the contract matures where he will be paid by the company.
Economic growth of a company is highly promoted by the insurance.
The insurance company s able to bring together the savings from the people. The insurance company can come up with the trading activities that stir the economic growth of a country. The country’s economic status is greatly influenced by the insurance company. Medical support is essential in managing the risk of health’s rise in the medical expense is of great concern. Medical insurance is a policy that caters to the different type of health risks. The insured gets a medical support in the case of medical insurance policy.
The main objective of the insurance is to spread risk among a huge number of people. This is made possible by the fact that most of the people pay the insurance premium. The people can be paid using the insurance premiums in case the loss insured against occurred.
Huge funds are collected by the way of premium. More chances for employment are created in such big investments which help to stir economic growth of the country.