Insurance is one of the major and essential financial services sector. The main concept of insurance is managing the risk. Insurance sector generates long-term savings. Insurance sector plays major role in economic development.
The factors which are included in growth of the insurance sector are:
The factors which are included in growth of the insurance sector are:
- Macroeconomic growth: Most of the countries are investing large amounts in infrastructure. These factors will create large demand for insurance coverage.
- Privatization and restructuring of government pensions: Privatization programme will serve as a channel for the development of the insurance sector. Reduced role of the state in pensions will also lead to the raising demands for the life insurance and long-term savings.
- Growth of financial services: The demand for insurance products will be increased due to the growth in asset based financing such as home and auto loans.
- Demographics of the region: If population matures the demand for insurance products increase.
- Create awareness about insurance products: The demands of the insurance products increases by creating awareness.
The above mentioned are some of the factors, which can increase the demand of insurance products and also lead to the growth of the insurance sector.
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