By Michael F. Rellosa
AS we celebrate the 72nd anniversary of the establishment of the Insurance Commission, it would do us well to appreciate the institution, the people who make up its team and the industry that enables it.
Few people realize the value of the insurance industry; much less the value and importance of its regulator. To begin with, insurance enables the economy. It generates funds by collecting premiums, which are then invested in government securities and stock. These funds are then used to further the industrial development of a country. It also spurs employment opportunities as it increases investments leading to capital formation. Insurance has a significant impact on the economy by mobilizing domestic savings. Insurance’s main role is to protect existing assets and mitigate loss. This also leads to creditors requiring insurance protection as a prerequisite to credit. This adds up and results in financial stability and promotes trade and commerce activities, which in themselves also give rise to economic growth and development. We can, therefore, appreciate the crucial role insurance plays in the sustainability and growth of an economy.