Insurance is largely invisible in our developed economies, and yet insurance is everywhere. In fact, a vast number of actions are covered by an insurance contract: people’s health, movements, purchases, homes, and even their lives. As modern insurance manages risks, it allows individuals, companies, and societies to take risks instead.
The concept of insurance has existed in many ways since Antiquity. Indeed, insurance as we know it today is only a sophisticated form of the tools developed by traditional societies to create a climate of mutual trust among people.
How does insurance contribute to the functioning of the economy and society? The answer is here: