The role and importance of insurance, here, has been discussed in three phases: 1) uses to individual 2) uses to a special group of individuals ie business or industry and 3) uses to the society uses to an individual. Security is fundamentally important across all walks of life to ensure the overall safety and possessions of all individuals are comprehensively protected. The two basic types of life insurance are traditional whole life and term life simply explained, whole life is a policy you pay on until you die and term life is a policy for a set amount of time. Importance of fire insurance fire insurance is essential for business because, it helps to protect from the damages which is occurred by the fire for industrial development of a country, fire insurance plays vital role by giving the certainty of paying financially against losses of an entrepreneur, businessman or industry-owner for such.
Insurance represents one important risk-financing tool since most organizations don't have the required funds to completely cover a potential loss, insurance represents an affordable and effective solution to mitigating risk. Insurance is financial risk mitigation purchasing insurance is a way to reduce the financial impact of a business interruption, loss or damage to a facility or equipment insurance companies provide coverage for property damage, business interruption, workers' compensation, general liability, automobile liability and many other losses. The fundamental role of business has remained relatively constant: providing the goods and services that people need or want what has changed dramatically over time are the expectations placed on businesses. Multiple types of property insurance policies can protect your business assets and buildings against outside theft, fire, storm and other perils basic property insurance covers a wide range of threats but omits others.
Insurance is important because it protects a person or entity from extreme financial loss or responsibility due to an unfortunate emergency, accident or negative unforeseen event there are many different kinds of insurance, some of which cover a person and some of which cover businesses and other entities. The importance and roles of insurance industry in nigeria economy abstract the need for this research paper is partial fulfillment of the researcher's program in insurance and as a result of the need to know the importance and roles of insurance industry in nigeria economy. Insurance companies insurance companies pool risk by collecting premiums from a large group of people who want to protect themselves and/or their loved ones against a particular loss, such as a. The following point shows the role and importance of insurance: insurance has evolved as a process of safeguarding the interest of people from loss and uncertainty it may be described as a social device to reduce or eliminate risk of loss to life and property insurance contributes a lot to the. Thus insurance covers, promotes specialization and flexibility in the economic system that play contributory role in healthy and smooth growth of trade and commerce 6 facilitates efficient capital allocation insurance provides cover to large number of firms, enterprises and businesses and also deploy their funds in number of investment projects.
3 introduction toto insurance underwriting underwriting is a critically important function and is performed each time an insurance application is taken. Nevertheless, this type of insurance is a must for all businesses the business insurance needs can grow with the development of your company this is why it is necessary to have knowledge about all the different types of insurances available. The last type of risk transfer product is ip value insurance, which is a direct loss cover rather than a defense cover it is triggered by legal claims against the ip that result in loss of revenue or value associated with invalidity of findings or other legal claims against patents in an insured's portfolio. The uncertainty surrounding insurance companies during that period, highlight the importance of understanding insurers' financial information and its implications for the risk and value of insurance companies.
Insurance is a means of protection from financial loss it is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss an entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter. Necessity of insuring your business: have a look insurance is the wisest decision taken by anyone when one thinks of starting a business there are many complexities and there are a number of components that make up your business, there are so many things that can seriously undermine your business, and so insurance is a necessity for anyone who is serious about establishing a long-term and. Social: the balance of power is shifting towards customers new and ongoing social trends will shake up traditional business patterns in the insurance industry, resulting in an. From the day an entrepreneur starts a business, he exposes himself to certain risks even before the first employee is hired, a business is at risk, making it important to have the right insurance.
It's an important type of insurance coverage that is often overlooked, as few people stop to consider what would happen to their business and their personal income if they were unable to work in addition, business owners should consider business overhead insurance , which reimburses a business for overhead expenses in the event a business. Importance and role of banks:- banking plays an important role in the financial life of a business, and the importance of banks can be seen from the fact that they are considered as to be the life-blood of modern economy. Credit insurance, the british government established a trade finance program, offering up to six-year financing of exports at a preferential rate (1 percent above the bank of england rate or a minimum of 8 percent. The insurance business is much different, because a policyholder pays premiums in exchange for the insurer's promise to make a payment to the policyholder in the event of a claim.
The role of the actuary actuaries fulfill many roles in a broad range of environments, including insurance companies, health organizations, pension plans, risk management, government. Insurance is something that everyone should consider taking for themselves, and for their properties and businesses there are different types of insurances types that are on offer, and it is good to consult with your insurance broker on what they have to offer. Depending on the type of business and its activities, it may need to be licensed at the local, state and federal levels states have different requirements for different business structures.