Role of the Insurance Industry in Economic Development

Over the past years, there has been an exceptionally large national increase which has caused several population issues. These issues include: homelessness, deforestation and more fields being used to make space for shops and houses disrupting the biodiversity growth. Problems like this are caused when there is an abnormal increase in the birth rate where more babies are born; this is also known as a ‘baby boom’. This can occur when nations have more children as a whole and events like this normally takes place after an achievement – an example being when we won the World War Two. The country was relieved that the fighting was over so their instantly celebrated which is why more children were born. In the last 50 years alone, the population has doubled showing just how fast the population is actually growing and even though it may seem fortunate that there are less recorded deaths, this makes the Economical

The insurance industry’s performance is highly correlated with the state of the economy and specifically GDP growth. From the data outlined in this report, it is evident that the insurance industry flourishes alongside the economy where factors such as output, unemployment, and other variables are growing as well. Since the 2008 crisis, the Canadian economy has recovered quite well. One of the key concerns going forward is the current exchange rate of the Canadian dollar. Going forward, as the economy goes into a boom it will be crucial for the insurance industry to reach its potential.

Benjamin Franklin helped to establish in 1752, what it would be the first mutual insurance company. For many years, the United States government never considered necessary to incorporate a system that would compensate their citizens in case any injury, accident or loss happen to them. It wasn’t until 1735 the first underwrote fire insurance company was created; in Charleston, South Carolina. Underwrite insurance companies are the ones, that analyze all the risk of insuring a particular person or asset and uses that information to set a premium pricing for insurance policies. But it took 20 years to create the first mutual insurance company, one in which policyholders would come together to share the risk.

The subject of insurance and how heavily the government can mandate it or not mandate it is a constant struggle in politics. There is always the question of “what kind of relationship should the government have with its people and what role should it play with businesses?” Currently, a popular subject is the Affordable Care Act (Obamacare) and it is challenging the boundaries by requiring people to have health insurance and requiring businesses to offer health insurance to everyone and anyone. Mandating insurance is a hot button subject in other areas too that we will discuss like auto insurance, workers’ compensation insurance, and professional malpractice insurance.

In America, we not only have the problem of the non-insured but the under insured which causes just about as much problem as the underinsured. Each group has contributed to the vast growing cost of healthcare. Over the last decade or two, the amount of uninsured has risen due to the job market in the economy and the fact that most insurances are tied to employment, which is also a problem as the unemployment rate rises. The purpose of this paper is to explore this issue.

In the last few centuries, Europe has experienced major changes both in its population makeup and number. Be that as it may, in the last two decades, it has been faced with an unprecedented decline in population growth while struggling with the issue of an aging population. Indeed, from Helsinki to Lisbon, the birth rate has fallen dramatically in recent years. It has fallen so much so that most countries have put together some form of policies to help mitigate what is perceived as a serious demographic crisis in european capitals. Those policies have yielded different results. While some countries like France are now experiencing a slow growth rate as a result of those policies, others in the likes of Germany are forced to still deal with an ever declining population. In this paper, I will be analyzing, comparing, and contrasting the policies in both countries.

The complexity of health care could take the rates on a massive trajectory that does not favor the people covered. Therefore, the financial protection that the levels of health insurance covers, help to guard against the risks related to the unexpected costs of health care. The source of coverage could still have an impact by the insurance coverage and financing alternatives that one has access to; Conversely, private insurance, social insurance, and the national health services are the types of healthcare systems by funding and provision. As we look to health care coverage and the reform of Obamacare, I’ll analyze the impact of the uninsured in the industry and look for a resolution to improve the

It is indicated that people would be even less careful, and could potentially engage in riskier behavior in different environments.Therefore, this proposal might lead to moral hazard for social insurance which protected in some way from risk will act differently than if they did not have that protection. In examining the effects of social insurance, the four types of moral hazard play a particular important role. The first is that it reduces precaution against adverse events, for example if someone had medical insurance that covers their illness, it reduce preventive activities to protect their health, or because they have workers’ compensation insurance, then they are not careful at work. The second is increased odds of entering the adverse state, for example if someone has workers’ compensation, then they are more likely to claim that they were injured on the job. The third in the increase expenditures when in the adverse state, for example because someone has medical insurance, then they are likely to use medical care than they otherwise would. The fourth is supplier responses to insurance against the adverse state, for example someone has medical insurance, physicians provide too much care or firms are not as careful about protecting against them against workplace accidents. Furthermore, through this program it can lead into moral hazard and which may

business of insurance. But the lack of uniformity, loop holes, blind spots and deficiencies within

We live in a nation of freedom and free markets. However, there are some markets that are not as free. One market is the insurance industry. Insurance started in the roots of the early Republic with marine and fire insurance. Then the liability and property insurance expanded to other areas. Later life and health insurance evolved in the 1840s. Originally it was to protect the farmers. Mutual Life Insurance Company of New York took insurance to the public through accident insurance in the 1850s. As time evolved, many new companies wrote coverage for different things such as fire insurance, aviation insurance, automobile insurance, health insurance, and so on. In 1906 it was determined life insurance business was a fundamentally sound

First, we must examine how we got to our current situation today here in the United States. The U.S. Healthcare system comprises a convoluted patchwork of public and private programs that have functioned at variable degrees of success over the years. Coverage in the U.S. has traditionally been offered through one’s employment, although employment alone does not guarantee that an employer will offer insurance. Although a plan for a national health insurance scheme had been in the works under Nixon, any hopes of witnessing its implementation died with his resignation (Toland).

Insurance is an arrangement by which a company gives customers financial protection against loss or harm such as theft and illness in return for premium payments. One of the most important ways that external economic factors are affecting insurance industries is by experiencing a slow pattern in the economy. Insurance companies are affected by lower sales and lower rates of returns on their investments. Companies have to sell certain products for which they have the commitment and the

Recently, insurers introduced online insurance policies. This got a wide spread acceptance from many clients in that it is quick, easy and convenient. It is also cheaper in that a person doesn’t have to travel

of 2009, but also include more long term factors such as the need for environmental sustainability action plans to be incorporated into government policy and the changing population structure which is undergoing an upwards shift in the ageing population as the number of younger people declines and the number of older people increases. This will have a significant impact on government expenditure in the provisions of income support, health and aged care services.

There is a spacious room for lemon in insurance field. The price for health insurance is not fixed, it varies based on the level of the need an applicant may require for the insurance. As in the case of elderly people over the age 65, it is well known that it is very difficult for them to get health insurance because of its high price as they certainly will need it more than other applicants. On the other hand, employees working in companies are offered health insurance as a part of the companies’ policies and regulations. This actually create more room for lemon in the insurance field and less chance for old people who need it more. This ended up with adverse selection by the insurance companies. (A.Akerlof, Aug