Insurance is an important financial element of both individual housholds and the economy as a whole. Life products help to increase savings, especially the long-term ones. The objective of such savings can be varied, the most important being the educational needs of children and security in the old age. The importance of insurance will increase with a reduction of the scope and level of benefits from the social security and health system.
Insurance policies function as a macro-economic “economy stabilizer.” Indeed, they soften the shocksassociated with risks as well as they contribute to GDP growth. The insurance industry is also an important employer. It employs nearly a million people out of 33 domestic insurers associated in CEA. CEA is the European federation of associations of insurers and reinsurers.