the role and importance of insurance

The economic development of any country is dependent on its financial system -- its banks, stock markets, insurance sector, pension funds and a government-run central bank with authority -- or at least influence -- over currency and interest rates. In developed countries, these two sides of the economic coin work together to promote growth and avoid runaway price inflation.

Insurance provides financial support and reduce uncertainties in business and human life. It provides safety and security against particular event. There is always a fear of sudden loss. Insurance provides a cover against any sudden loss.