Background on insurance

 

Background on insurance

Until recently, before the global credit crisis, the countries of the world were experiencing a period of economic prosperity resulting from the fields of construction, real estate, and tourism. Here lies the need for a strong financial services industry to support these key industries, encourage investment and develop the regional economy.
Insurance is considered a key player in economic prosperity as it allows the transfer of risk from these sectors to the financial sector (insurance). This is considered the reason in recent years for important mutations in the rules regulating insurance work.
Throughout history, countries have provided an acceptable risk climate that has enabled them to grow despite the lack of complete rules governing the business of insurance. Many undercapitalized domestic insurers operated in a comfortable climate with little or no foreign competition, little risk and a high level of confrontation, meaning that domestic insurers were exporting risk to foreign reinsurers. This was a reason for the desire of the authorities and businessmen for the need for change in the insurance sector to stimulate its growth, as is the case in countries with rapid growth, to keep pace with the demand resulting from the current economic growth.

The implementation of the law requiring medical insurance for foreign workers in most countries of the world is a full recognition of the importance of insurance.
Personal organization, rules of work conduct in industry, rules of effective institutional organization, etc. will be developed along with the development of the system itself. It is also expected that breakthroughs will emerge in other areas, such as the legal framework for resolving disputes, company laws, etc.