Explain four ways in which the insurance industry contributes to the development of Kenya’s economy.

      

Explain four ways in which the insurance industry contributes to the development of Kenya’s
economy.

  

Answers


Davis
-government: the government collects revenue by taxing the insurance industries and uses this revenue to provide public services.
- Creation of employment: there are many people employed in the
insurance industry.
- Creating confidence: the industry encourages businessmen to take
risks of investing.
- Investment funds: monies collected by insurance companies are
made available to investors as loans in various sectors of the
economy.
- Compensation: Compensation offered by the insurance industry
enables the economy to continue developing.
- Encourages saving: mobilizing long term savings from the
members of the public.
- Direct providing: can be used to secure loans loss prevention
encourage the insured.
Githiari answered the question on September 20, 2017 at 09:58


Next: Discuss various insurance policies under which an insurance company would not compensate the insured in the event of the loss.
Previous: (a) State two roles of mucus in the stomach. (b) Explain how age determines a person's energy requirements.

View More Business Studies Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions