Abstract:
Insurance development plays a vital role in a country’s economic and financial growth. The financial sector and in particular the insurance sector indicates a country’s socio-economic development. The insurance industry works bi-dimensionally; reducing the risk or uncertainty and creating long term financial resources. The presence of a well-developed insurance ensures optimum investment decision making as well as reducing the insolvency risk of businesses in case of catastrophes. The pool of premiums generated acts as long term funds that are invested in other financial instruments thus improving the economic health of the country. Acting as a supporting industry it provides the confidence for the development of other financial institutions.
