0 votes
in Revision by
What are roles played by insurance industry in promoting the development of Kenyan economy?

1 Answer

0 votes
by (107k points)

Roles played by insurance industry in promoting the development of Kenyan economy are;

  • Employment creation insurance companies provided employment opportunities either directly or indirectly to individuals who would otherwise be unemployed.
  • Insurance companies create confidence for the investors who are able to invest in risky but profitable areas in that they are assured of compensation in case of a loss.
  • Insurance companies provide revenue for the government through profits realized and salaries for the employees when taxed.
  • The business is continuous even with the occurrence of the risk because the insured is compensated. Thus business people conventure even in risky ventures.
  • The amount contributed in the insurance company can be used as a security for a loan
  • Some policies in life insurance encourages savings. The amount contribute is owners savings. This money can be invested later once the policies matures.
Welcome to Kenyayote Q&A, where you can ask questions and receive answers from Kenyayote staff and other members of the community.

Before you ask, search the website to make sure your question has not been answered.
If you are ready to ask, provide a title about your question and a detailed description of your problem.
...