United States Insurance Industry

Question 1: How big is the insurance industry in the U.S.A. today? How does this industry affect the U.S. economy in general?

In the “United States there is over 6,000 insurance companies and there are 2.3 million employee working for this industry” (Vaughan, E. J pg.71). The insurance market with a premium volumes over $1.5 Trillion a year. The insurance industry is the majority of the United States economy. In the United States insurance is encouraged, an individual can’t buy a cars, a house, or a business, without giving the loan company verification of full coverage or proof of resources, to ensure against loss. In many states it is unlawful to not have insurance on your home, company or vehicle. The consumer risk penalties if these

Most people can't manage the cost of the doctor’s office visit without medical coverage, not to mention a visit to the ER or a stay in a hospital. Paying a monthly premium instead of the whole doctor's visit expense, helps an individual not worry about other expenses that may come up later. Life insurance continues to provide for various families that have lost a family member. When an individual is experience a loss, insurance companies can guarantee the insurer that they have a safeguarded. In most cases having insurance can ease worries and the individual will have the ability to receive money, and are eligible for the insurance company to make payments for doctor's expenses, and compensate for the loss work

By providing money to the individuals who have become unemployed it gives the insurer peace of mind knowing there is some income coming in to pay the bills. As indicated by the Department of Labor, unemployment insurance assisted 17 million individuals in 2014 and kept 4.2 million people from going beneath the destitution line which is not hard to do. Laborer's Compensation insurance can spare employments and help the economy also. (www.dol.gov) At any given point when an employee gets hurt, the insurance company kicks in and the injured party does not lose their income while they are unable to work. And the business which the employee works for does not lose profits.

Insurance agencies also contribute a portion of the surplus premiums to give financing to land endeavors, for example, townhouses, apartment buildings and retail opportunities like malls and business office buildings. They additionally put resources into stocks, securities, mutual funds. Essentially, without insurance agencies, our economy would cease to exist, society may complain about the insurance venue, but without it this nation would be in