Insurance has extremely profound, which impact on economic life and society. The insured iusse has a lot of benefits for economy, politic and society.
Losses offset and overcome losses
Offset the losses and damages remedial of effects of risks are mainly benefits of insurance. Regarding to insurance, it refers to the role of insurance companies providing insurance services to restore physical ability, as initial financing for insurance buyers when risk occurs. Insurance helps to limit the damage to a minimum low may occur, thereby reducing the negative impacts affecting the economy and the community.
Effective use of idle funds
In life, each individual must always take into account the risks , which may encounter and want to be active in the stationary situation as bad as pain, illness, accident , they should set aside a provision for use when needed. This is the idle funds in social terms that will be the sum of not less lucrative investment if used. Joining iInsurance instead of setting up a reserve fund would help individuals and families overcome financial difficulties, do not fall into the state of physical exhaustion and mental before extraordinary events may occur savings with much lower per year.
Creating huge monetary funds to invest in other areas to meet the needs of capital for the economy
Due to the characteristics of the insurance business that premiums collected in advance, the payment of compensation and insurance will often arise a later time, so most of these funds have temporarily idle time. Insurance activity through which a large amount of capital (premium) scattered places are focused on forming a large monetary fund. Therefore, the insurer may use this capital to invest, to meet the needs of capital for the economy.
Help to increase state budget revenues
Thanks to the activities of insurance services that support the state budget will have to pay huge subsidies to offset the losses caused by natural disasters or unexpected accidents annually. Business insurance business also contributes to the state budget items such as value added tax, corporate income tax. Thus, the insurance helps to stabilize the state budget, and creates conditions for the state budget more investments in economic development. In addition, an insurance market flourishs and stability, which will attract individuals and institutions insured by an insurer in the country, contributing to saving a large amount of foreign currency for the state budget.
Contributing to financial stability and security for investments
In business, organizations must spend large sums reserve fund as capital investment. Investors have feared the risks of natural disasters, accidents can happen as they lost, even lose all the capital. Considering the entire society, the sum of the reserve fund will be a significant amount, which release huge profitability if the investment is taken. Insurance helps investors more confident when deciding to invest. Actually most of the investment projects are required to have insurance, especially for large projects. The compensation, insurance payments help the organization to preserve assets and their capital against risks. Therefore, the insurance acts to ensure and encourage investment.