Why Is Insurance Necessary For The Economic Development Of A Country. Economic growth merely refers to an increase in the real gross domestic product, or gdp per capita over a period of time. For a country to be generally recognized as a developed one, it also needs to be able to provide its citizens with as fair as it is possible a distribution of basic resources and.
The insurance becomes a major component in certain economies, consequently the weight of insurance to the gdp of every country being over 10% in some european countries (such as the netherlands, the united kingdom and finland), and it is even higher as the economic development is higher. Insurance companies help finance economic development projects. Have more than $1.4 trillion invested in the economy.