Question

We all know that insurance companies play a vital role in the United States economy. Briefly discuss a Business insurance company and its role in the markets these days especially. How is that company (or type) doing and are they successful with what we are going though in your opinion. Keep in mind that they are also big players in the capital markets investing heavily. Discuss a positive and negative about the company.

Answer 1

Advantages 1) provide economic protection 2)maintain standards of living 3) encourage of savings 4) eliminates dependency 5) grants loans 6) create employment opportunities 7) promote foreign trade 8) help to operate business smoothly9) help to reduce inflation. Disadvantages:1) is does not compensate all types of losses which causes biasness by insurance company 2) it takes more time to provide financial compensation bcoz lengthy legal formalities 3) although insurance encourage savings it doesn't provide the facilities that are provided by bank 4) it may lead to the crimes inthe society as the beneficiary of the policy may be attempted to commit crimes to receive the insured amount