“Peace of Mind in Uncertain Times: Why Insurance Matters More Than Ever”

By Daily News Reporter

In the course of our lives, we only realise the importance of insurance when we experience life-changing events, which result in unplanned expenses.

However, despite the uncertainties and risks faced, few people try to save money or adequately prepare for these eventualities, causing pressure and stress on household finances, and often leading to poor choices in financial services to cope with these events.

When you have worked hard for everything you own, you need to ensure your property is protected if anything bad happens. Accidents, property damage or even death can occur at any time. If you have not prepared for uncertainties and risks, you will end up with unnecessary financial woes.

Having an insurance policy brings peace of mind, and greater financial confidence, knowing risks you may face can be dealt with without putting a strain on your finances. Buying insurance means you are transferring the cost of a potential loss you might incur to the insurance company by paying a premium – a regular amount of money put aside to pay for unforeseen circumstances,

Despite having more than 30 licensed insurance companies, the country’s insurance sector contributes under five per cent to Gross Domestic Product. And most citizens have no form of insurance cover.

The insurance industry remains one of the most underdeveloped sectors in the country. Most of the population remains uninsured. This perhaps shocking statistic is despite an 18 percent growth in investment income and a 2 percent increase in the number of insurance policies in place in the first quarter of 2018, compared to last year.

Regardless of its low penetration, the insurance sector plays a vital role in the financial wellbeing of many people, helping provide financial security when needed most.

One of the primary ways the insurance sector helps economic development is through risk management for investors. When an investor invests in a certain area, they will try to weigh the potential profits against the risk of failure.

Increased insurance coverage – in terms of a greater number of insurance policies being taken out by people and companies - will not only improve the sector’s ratio to the country’s GDP, but also provide more affordable sources of funds for insurance providers to improve access to better, more affordable insurance packages for citizens.

INSURANCE Companies seeks to support private sector growth by promoting financial inclusion - not only through affordable lending but by also ensuring there is adequate insurance protection cover against the risk of defaulting on payments for Personal Loan Plans due to any unforeseen events.

When planning future finances, preparing for unforeseen events is very important. However, good planning only happens when people are assisted in their planning via wide availability of attractive insurance products from the sector and other financial institutions.

We must work towards increasing the insurance spending ratio through the improvement of insurance products and services in the country. Increased access to insurance generates more affordable sources of funds for insurance companies - and the benefit can then be passed on to the customers who find themselves at the mercy of an insurance claim.

The number of people accessing insurance services must go up - because this is the money that insurance providers use to pay insurance claims and give people their lives back. This is also the money that individuals can use to prepare for key life events, which would make life much easier for them. So, people should be encouraged and given incentives to insure.

To make this happen, insurance companies should design products that encourage people to insure their assets and gain access to resources for uncertainties and risks.

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