Insurance is not a nice to have, but a need to have

November 22nd 2022

Someone once said “…Insurance is not a nice to have, but a need to have…”. Some will ONLY see it as a need to have because some classes of insurance have been dictated by the government as mandatory or are prerequisites to qualifying for tenders/contracts in some industries. However, insurance is a need to have on the basis that it promotes mitigation of losses, increases trade activities which all lead to sustainable growth and development of the economy.

One would ask, “How then does insurance contribute to the economy?”

Insurance is a financial tool that businesses have at their disposal when unfortunate events happen. It provides a safety net that allows organizations to engage in high-risk , high-return activities therefore resulting in job creativity and economic activity. Insurance also contributes to the state through taxes (insurance premium levy).