While the actual losses lie most heavily on the individuals, society as a whole is also affected.

Direct and highly visible benefits to society are deponstrated by the following examples. If a family is deprived of its income due to illness or death, the state must supplement the family income. Where property is lost, the result could force the individual into bankruptcy and thereby cause financial hardship to his creditors. In addition, the nation has lost an asset.

However, the benefits of insurance to societ run deeper that this basic and direct benefit outlined above. Argueably more importantly is the stabilising effect of insurance on an economic unit. In other words, if an entrepeneur has ready and relaible access to insurance, he will be more likely to engage in economic activity within that units geographical area.

Of course, business' will engage in activity in all economic and political areas, but the higher the risk, the higher the return they will demand. Therefore, in stable evironments that have financial structures and mechanisms such as insurance that will assume risk, the cost of transation is cheaper. This in turn will encourage further economic activity and growth is more likely.

Also, losses caused by natural disasters such as flooding, storms and othe climatic factors can cause widespread death and destruction which can affect the whole economic area. However, if there are robust funds already in place to repair the loss, there is valuable time saved in getting repairs actually carried out, and the chances of the fabric of society and the fabric of the economy being severly retarded are reduced.

In summary, insurance benefits the individual in a very direct and visible manner. However, the confidence that entrepuners gather from the availability of insurance, both to them selves and others with whom they interract, aswell as the actulual availability of disaster funds afford the entire economic area an major advantage over other less well developed economic areas. Argueably, this is the dominant benefit of insurance to us all.