Insurance affects everything and everything affects insurance. We can all agree that insurance allows those who own a car, a home or operate a business can do so without the fear that some adverse incident could leave them unable to function. However, few people are aware of the extraordinary impact the industry has on the country’s local and national economies.
Both Property/casualty and life insurance contribute to our economy far beyond helping to manage risk.
Property/casualty (auto, home, farm and commercial) insurance allows those who are the victims of accidental loss to recover financially through the payment of claims for property damage and injury. When property/casualty insurance claims are paid, funds are transferred to local businesses in the form of payment for goods or services. Among those that receive the most revenue are auto repair shops, building contractors and the health care community.
Life insurance helps households manage their finances in the face of death and disability by minimizing disruption to a wage earner’s dependents. Annuities reduce the likelihood that a retiree will run out of money. 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.
P & C Insurers alone have sales of over $30 billion. Their taxes amount to $6 billion every year. They are also very large employers, providing jobs to 100,000 Canadians.
This is a great industry to be involved in, as the consumer’s advocate, your insurance broker gets to provide insurance advice and coverage.
Be sure to seek advice and purchase insurance from an insurance broker who understands your business!