Question

Insurance is deemed by some as a social and merit good. Discuss the pros and cons of insurance within the context of it being described as a social good. With that being said, whose responsibility is it to provide insurance to society? Corporates, Individuals or the Government? Substantiate your opinion to its full extent.

Answer 1

Insurance is a social and merit good as it makes financially risk averse people better off. It can help protect a business or a person from financial loss, liabilities or instability in the case of an owner or business partner's death. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity.