Insurance Of Developing And Developed Economies

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Insurance in Developing and Developed Economies
Introduction
Insurance is a contract, represented by a policy, in which an individual receives financial protection or reimbursement against losses from an insurance company and it plays an essential part in the global financial sector. Instantly, insurance company operations are important for the banking industry development, fosters trade and commerce across countries. All these activities are lead to economic growth and there are impacts that insurance can contribute to economic growth. In contemporary society, the importance of insurance-growth is increasing rapidly in the aggregate financial sector in almost every developing and developed country. According to Mark J. Browne, the world insurance business, which constitutes a significant portion of the service sector, has grown at a rate of 10% annually since 1950 and this growth rate has far exceeded that of overall world economic development. This paper will explain new this growth in insurance, insurance industry can contribute to overall economic growth in both developing and developed countries, albeit in unique ways for each set. Specifically, the following paper will focus on direct, indirect and induced economic impacts of life and non-life insurance contribute in both developing and developed countries.

II. Types of Insurance Insurance companies provide several types of products. Basically, insurance can divide between life and non-life insurance. The most
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