Question

Explain five roles of insurance in the development of the economy

Answer 1

1. Creating confidence in investors – this will therefore make them take risk and go on renting in investment
2. Creation of employment – insurance companies create employment to individuals
3. Mobilizing savings – this savings is then borrowed by the business community to start and expand business
4. Compensation when loss is suffered – this enables people to go on with their business
5. Educate others on matters pertaining insurance – this help people to learn more of insurance related issues