March 2016
Intermediate to advanced
700 pages
144h 54m
English
Content preview from Principles of Risk Management and Insurance, 13th EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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Benefits of Insurance to Society
The major social and economic benefits of insurance include the following:
Indemnification for loss
Reduction of worry and fear
Source of investment funds
Loss prevention
Enhancement of credit
Indemnification for Loss
Indemnification permits individuals and families to be restored to their former financial position after a loss occurs. As a result, they can maintain their financial security. Because insureds are restored either in part or in whole after a loss occurs, they are less likely to apply for public assistance or welfare benefits, or to seek financial assistance from relatives and friends.
Indemnification to business firms also permits firms to remain in business and employees to keep their jobs. Suppliers ...
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