The importance of insurance coverage stands out in the services it provides to countries, people and economic and commercial institutions, and its most important advantages are:
- Provide security and tranquility by reducing the degree of anxiety and fear that we have as people and owners of capital, since its existence provides a guarantee to provide financial compensation for losses derived from the realization of certain risks.
- Insurance allows individuals and families to regain the same financial position before the loss occurred, and thus maintain the same standard of living without resorting to seeking help from others.
- Compensation guarantees the continuity of the projects in the performance of their activities and thus preserving the jobs of the workers in those projects and the continuity of the provision of goods to the consumer, thus ensuring the economic stability of the people and projects .
- The insurance industry is considered a source of financing for investment projects by hiring insurance companies for insurance premiums until they are needed in the future. There is no doubt that these investments play an important role in economic growth and financing plans for economic and social development.
- Insurance is considered the basis of commercial credit through credit insurance that encourages the expansion of credit operations and installment sales, since it ensures that borrowers and sellers obtain their full rights in the event of the death of the debtor or the buyer and guarantees to the debtor the payment of the remaining balance on him if he dies before completing the payment and thus removes him From the heirs must bear the burden of continuing to pay that debt.
- Insurance contributes to the development of prevention and prevention methods in order to reduce the rate of occurrence of an accident or reduce the size of the expected loss, through insurance companies that conduct research and studies and provide a specialist in the field of security to develop and develop these means and make recommendations that reduce losses.
- Insurance premiums represent a significant part of international commercial transactions in the form of invisible imports and exports, on which many countries depend as a significant part of their exports and return large sums to them in the form of insurance and reinsurance premiums.
- Insurance provides excellent services that are hard to do without, such as professional liability coverage for consulting physicians and other professionals.
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