Promotes economic growth: Insurance sector provides capital into productive investments. Insurance enables to mitigate loss, financial stability and promotes trade and commerce activities those results into economic growth and development. Thus, insurance plays a crucial role in sustainable growth of an economy.

What is the role of insurance in economic development of a country do you think insurance can play a Social security role Support your answer?

Insurance sector plays great role in increasing GDP. All premiums collecting by insurance companies effect economic development positively. Besides that insurance effects to balance of payments, financial stability positively and it also increases employment in economy. These factors also accelerate economic growth.

What is the role of insurance in the economy?

Insurance provides the economic function of distributing risk. An individual pays a premium to an insurance company, which ensures him against a catastrophic event that has a large potential economic cost.

Why are insurance companies important for economic development in India?

Indian insurance companies are able to mobilize long-term savings to support economic growth and also facilitate economic development by providing insurance cover to a large segment of our people as well as to business enterprise throughout India. 2. Capital Formation and Insurance

How does the insurance industry help stimulate the Economix?

Insurance companies help businesses mitigate risk and protect their employees. As with consumers, helping businesses mitigate risk can have a lasting, positive impact on the economy. A stronger Main Street leads to stronger communities and overall improved economic health of individual states and the country as a whole.

What is the role of life insurance in India?

Insurance services act as a tool to mobilize saving, function as financial intermediary and at times also indulge in direct investment. Also govt. has made regulations under which every insurer carrying on business of life insurance shall invest 25% of funds in Govt. securities and not less than 15% in infrastructure and social sector.