Insurance benefits : Making Financial Recovery is Possible

I think we totally agree if someone say that Insurance makes economic recovery possible for victims of earthquake catasthrope in Chili, New Zealand and Japan. Economic recovery will be more fast if the risks are coverage with insurance. It’s so much better than not having anything at all. The above statement is all right.

The catastrophic earthquake in Japan, Mart 2011, made the insurance industry swallow loss more than US $ 35 billion. The catastrophic earthquake in New Zealand make insurance claims approximately NZ dollar 11 billion in February 2011.  The catastrophic earthquake that struck central Chile in April 2011 is estimated to have caused billions of dollars in insured and economic losses. Insured losses are being estimated between U.S. $2 billion to $8 billion and total economic losses may cost between U.S. $15 billion to $30 billion.

If it wasn’t for the highly developed insurance market in Chile, economic recovery would be much more difficult. In addition to a number of its own insurers, Chile also has many large international insurers and reinsurers (mainly American and European) that will provide the financial resources necessary for Chile’s reconstruction, according to the Insurance Information Institute (III).

That makes Chile’s situation much different from Haiti’s, which was struck by a devastating earthquake on January 12. Haiti has almost no private insurance market.

According to III, direct premiums written in Chile in 2008 totaled roughly U.S. $5.8 billion. Of that, nonlife (i.e. coverage on homes, businesses and vehicles) insurance premiums accounted for U.S. $2.3 billion and life premiums U.S. $3.5 billion. By contrast, in Haiti, estimated total nonlife premium income written in 2008 was $19 million. Makes you wonder how different recovery would be for Haiti if it had a stronger insurance market.

Unfortunately, the benefits of insurance are often seen only after a disaster strikes. While no amount of money can ever make up for loss of life, insurance makes it possible for survivors to rebuild their lives. I often hear people complain about paying for insurance – saying it’s a waste of money. But it’s situations like these that remind us why insurance exists. Insurance business really give more benefits for insurance industry - insurance companies - and insurance policyholders each other. Insurance business makes economic recovery more faster and financial business more lively. Insurance services is rational needs for anticipating any catasthrope, disaster and accident.

We suggest you to buy any insurance according to your requires and how much money do you have for buying insurance.