Insurance companies, banks, and lenders each serves as a unique funding source for the people. The role of insurance companies in the Philippines to the development of the national economy cannot be disputed. As early as 1964, the United Nations has identified the industry as an important component of a functional economy. The diligence they perform when making investment solutions such as effective project screening and monitoring help improve the quality of investment, ushering to a more rapid and steady economic growth.
Funding national development
Funds that are not used to pay claims and operating expenses are invested by insurance companies to finance major projects, both in the public and private sectors. The taxes these companies pay to the government also help in financing different government programs such as improving infrastructures, funding different programs encompassing the nation’s education, health and security, among others. All of which contribute to the country’s development.
As a means of sustainable growth
Insurance companies provide significant contribution in terms of improving the sustainability of the country’s economic growth. They provide a better investment climate by promoting a more varied mix of economic activities with less risk.
Insurance provides recovery
Billions are lost in the national fund in rehabilitation after a disaster. Insurance policies allow businesses to replace and repair their establishment in the event that a major catastrophe such as an earthquake and other natural disaster hits.
Supporting businesses, workers and communities
Insurance companies that provide property insurance coverage pays out billions each year to settle claims. This primarily benefits small businesses, enabling them to provide jobs in their communities and pay taxes that support local economy. Not only that, insurance helps businesses to operate smoothly by providing protection to its capital, investments and employees. The availability of insurance enables risk prone individuals and enterprises to take higher risks and activities that yield higher growth and productivity.
Without an insurance, getting into contracts and agreements for businesses will be more difficult as they can face liability when conducting event the simplest business activities. Insurance companies in the Philippines provide property insurance policies made especially for businesses which provide protection from third party claims.
