Insurance is quite beneficial to diverse facets of life, ranging from individuals to businesses, to the society and even to the economy. This work is particularly concerned with stating the benefits of insurance to society.
- RISK MITIGATION DEVICE: Insurance serves as a risk mitigating tool to the members of the society. Members of the society find succor and compensation at the advent of any loss or risk in their property, automobile etc.
- INFRASTRUCTURAL DEVELOPMENT: Insurance companies provide the required funds for infrastructural development. Insurance companies partake in corporate social responsibilities in society. They do this by providing some essential social amenities like electricity, pipe borne water, etc.
- SENSE OF SECURITY: It provides a sense of security. Being secure and safeguarded against any future occurrences helps members of the society focus more in their daily dealings.
- SECURITY TO THE INSURED AND HIS DEPENDENTS: Insurance provides security to the insured during his life and to his dependents.
- EMPLOYMENT OPPORTUNITIES. With the entry of private insurers employment opportunities have increased greatly. This has reduced the unemployment rate in society as many people are now gainfully employed.
- SENSE OF LIVELIHOOD: Insurance provides a sense of livelihood to those who might otherwise not have an income source — housewives, retired people, students etc. can work as agents and earn a commission.
- RISK DISTRIBUTION: Insurance works on the principle of pooling of risks and distributes risks over many people.
- INVALUABLE AID TO TRADE: domestic and international trade have gained tremendous improvements and development since the inception of insurance companies.