Insurance with Economic Development

The role of insurance in economic development has long been confirmed by many researchers. The developed insurance industry contributes to many aspects of economic development: minimizing risks, ensuring financial stability for businesses, households, individuals helping to reduce shocks to the economy; is a financial intermediary that impacts investment savings and resource allocation to promote financial market development. In Vietnam, although still quite young compared to world, insurance has increasingly shown a clear role in contributing to the country’s socio – economic development. The insurance market not only effectively invest back into the economy, but is also a reliable “midwife” for businesses when facing risks, as well as supporting people to reduce difficulties in the face of uncertainties unpredictable in life. The author’s article aims to summarize the role of insurance in economic development in previous studies and evaluate the contributions of insurance to promoting economic growth, socio-economic stability and improve the quality of life in Vietnam.