Insurance Market Development

1. Introduction
 
 
 
 
 
 
 
 
 
1 
2. 
Insurance 
and 
Its 
Role 
3 
Insurance and Capital Markets 
Insurer Risks 
Insurance, Regulation, and Supervision 
3. Literature Review
 
 
 
 
 
 
 
 
7 
The Role of Insurance in Economic Growth and Activity 
The Role of Insurance in Financial Intermediation and Domestic Capital Markets 
Relevant Factors for Insurance Development 
Defining Effectiveness in Insurance Markets 
Review of Study Methodology 
4. The Importance of Insurance
in Latin America and the Caribbean
 
13 
 
5. 
Survey 
Results 
17 
 
6. Conclusions 
 
 
 
 
 
 
 
 
 
22 
 
Bibliography
 
 
 
 
 
 
 
 
 
24 
 

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1. Introduction 
In economic terms, 
insurance
refers to the 
pooling mechanism for reducing the down-
side of risk through resource reallocation 
from good to stormy states of the world: 
Insurance reimburses an individual 
for some or all of a financial loss 
that is linked to an unpredictable 
event or risk. This protection is ac-
complished through a pooling 
mechanism whereby many indi-
viduals who are vulnerable to the