ABSTRACT
The insurance industry has an important function in an economy. By offering financial security products to individuals and businesses, it can provide extensive coverage at reasonable cost of a wide range of economic activities and spread the risk of loss throughout the economy. It can also play a major role in overall economic activity through its financial intermediation function (Skipper and Klein 1999). In developing countries where bank deposits are the main method of saving, insurance, particularly life insurance, can further increase savings because the public finds it a more familiar and accessible route than the money market, for instance.
