The insurance industry and its role as a financial intermediary in...

Researchers have reported on the intermediation of insurance by seeking funds from economic players with sufficient funds and making them available to economic players in need of financing funds, such as entrepreneurs who are investors and borrowers of these funds for investment. By issuing insurance policies, the insurer collects the funds, in its capacity as a financial intermediary, and makes them available to people in need of various forms of financing, through the indemnification of property and casualty insurance or life insurance. This financial economics literature has sufficiently developed the notion of financial intermediation and its influence on the establishment of growth rates and general equilibrium models; other theoretical approaches have also highlighted the contribution made by the financial intermediation of insurance institutions to better economic performance. GDP figures for some economies have shown the contribution of the insurance industry, through intermediation, to economic development.