Insurance News

Archive for June, 2010

From the macro side, according to the Insurance Council of Australia, the insurance market effectively and efficiently is a fundamental tool for an advanced economy. Through the general insurance industry, the economy and economic agents can transfer and provide price risk, allowing them to better allocate resources to contribute to the growth / higher investment and living standards are also higher. As a driver of economic, general insurance contributes directly to economic growth by:

a) assess the risks and risky activities,

b) improve resource allocation in the economy,

c) reduce transaction costs between the parties when they want to move the risk of sensitive risk (risk adverse) to those who are willing to bear it (risk takers), d) supports economic development by facilitating the investment at a higher risk of what can be borne by the market without presence of risk,

e) invest the funds of insurance premium on deepening (deepening) the range of capital available for investment purposes,

f) reduce the burden of government / public sector in the event of damage or a severe natural disaster, thus also strengthening public financial management,

g) supporting the realization of the principle of joint liability and personal responsibility in individuals and communities to protect from loss and damage,
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