"Insurance affects everything and everything affects insurance" is a famous quote. It is
generally understood that insurance allows those who participate in the economy to produce goods
and services without the paralyzing fear that some adverse incident could leave them destitute
or unable to function.
Life insurance helps households manage their finances in the face of death and
disability by minimizing disruption to a wage earner's dependents. By providing a measure of
financial security to individuals, life insurance products help stabilize the economy. Insurance
companies also contribute to the economy through their investments. As part of the financial
services industry, insurers act as financial intermediaries, investing the funds they collect for
providing insurance protection.
The performance of an organization is the outcome of activities of individuals and units
of the organization. Except for the external influences on individual behavior and personal
traits, organizations can either influence or control all factors affecting the performance of
individuals and units through formal and informal means.
Insurance sector growth is measured with two important criteria in a country. The first
is insurance penetration and the second, insurance density. Insurance penetration is
measured as ratio (in percent) of premium to Gross Domestic Product (GDP) of a country. Insurance
density is measured as ratio (in percent) of premium to total population of a country. |
