Insurance Companies Supports Economies

  • Insurance Companies Supports Economies

    There are various insurance company that offer different types of insurance. Because of this, the process of looking for the right insurer and the best insurance policy could be a tasking and daunting task. Fortunately, there are companies dedicated to make this process much easier and more convenient for you.

    For example, assists condo owners by looking for the best insurance policy there are in the market which would best fit their needs as condos aren’t built the same, and the insurance will depend on many factors. They then present the options and carefully give a walkthrough for each to ensure you choose the best policy with the best coverage. With their service, searching through the insurance market is made easy.

    The Insurance Industry and the Economy

    Insurance has an effect on everything, and this is true the other way around. Insurance, in general, allows those participating and engaging in the economy to generate goods and/or services devoid of the fear and worry that some undesirable and unfavorable incident can leave them on the breadline or incapable to work or function. While insurance primarily provides financial protection to its holders, the industry also has an exceptional effect on all levels of the economy. Let’s take a look at some:

    Fuels the Progress of the Economy

    In the United States, the insurance industry greatly aids in its economy as it provides about 2.6 million jobs making the industry a key player in terms of providing employment. This is according to a survey conducted by the US Department of Labor. The industry contributes over 413 billion US dollars to the GDP of the nation.

    Capital Markets are Invested On

    Another way insurance company provide support and aid the nation’s economy is by making investments in capital markets with the funds they have collected to be able to provide its insurance holders protection. As per the S&P Global Market Intelligence, in 2018, the net premiums of the insurance industry of the US amounted to 1.22 trillion dollars. 51% of it was by premiums from property/casualty insurers which consists of homeowners, auto and commercial insurance, and 49% by life/annuity insurers that consists of accident, health, life insurances and annuities.

    Supports in Disaster and Resiliency Recovery

    Back in 2012 and 2013, P/C insurers in the US covered 35 billion dollars and 12.9 billion dollars in catastrophe losses respectively. According to the data of the National Association of Insurance Commissioners, the top property/casualty insurers have collectively contributed 47.44% of the market share recording premiums of 707 billion US dollars in 2019 from 681 billion US dollars in 2018.

    Supports Workers, Businesses and Communities

    Each year, the P/C insurance companies pay billions of dollars to settle claims. Many of the pay outs settled claims from local businesses which enables them to generate jobs as well as pay tax obligations that in turn aid the local economy.

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