Insurance companies play a vital role in the economy of many nations. They contribute to a country's economic stability by compensating individuals and businesses for financial losses that might otherwise ruin them. Insurance companies invest billions of dollars in stocks, bonds, mortgages, government securities, and other income-producing enterprises. Insurance companies also help guarantee repayment of loans and the completion of commercial projects and public works. People can reduce the risks of starting a new business or acquiring property by buying insurance. Thus, the insurance industry helps increase the production of goods and services.
The United States and Japan have the world's largest private insurance industries. Nearly all other highly industrialized nations also have a well-developed private insurance industry. Most less developed countries have few private insurance firms.
The Insurance Industry
Category: Insurance Industry