What makes good governance? #5 in series: Protecting businesses through insurance

ONE WAY OF LOOKING AT GOVERNANCE

People look at governance so that they can understand the way things work in a country. Reading below will show that on way of looking at governance is by looking at what form of protection is provided for businesses.

HOW INSURANCE CAN HELP BUSINESSES

There are lots of different ways to protect businesses and all will be linked to the idea of governance. Insurance is one way companies with governance can help businesses. Insurance is offered by companies who are willing to provide support for the loss or damage of your property or person. Paying money to an insurance company allows you to be supported if something goes wrong. There are lots of different types of insurance, ranging from business insurance to health insurance.

Promoting insurance among business owners protects them from when things go wrong. If a building belonging to a business catches fire or is robbed and does not have insurance, the owner has to pay for the cost of the damage. With insurance, the owner will be given support through money from the insurance company.

When judging whether business owners are supported properly by those in power, it can be interesting to look at whether insurance is encouraged. Insurance is an important part of improving and supporting a country’s economy.

EXAMPLES OF INSURANCE HELPING BUSINESSES

A large proportion of the population in Sub-Saharan Africa support themselves through farming. However, very few those who work in agriculture have insurance.

In Kenya, there has been a growing industry of providing insurance for farmers by using mobile phones. Farmers will pay 5% extra on fertilizers and seeds which are linked to an insurance company which then communicates with the farmer through text messages. These farmers receive support as the insurance company is told when weather in the area may affect agriculture.

In 2016, the Kenyan Government and an organization called the World Bank decided to create a National Agricultural Insurance Programme. The programme was established to help farmers deal with bad weather conditions that affect their crops.

GROWING IMPORTANCE OF INSURANCE

Protecting businesses through promoting insurance is growing in importance. Countries in Sub-Saharan Africa are inventing new ways to give insurance to rural farmers. Growing businesses need support and innovation to make sure they remain sustainable.

INSURANCE AND GOVERNANCE

Companies can create innovative methods to give farmers insurance. Because the company would be in charge of this, they would have governance as they are in control of the insurance. Looking at ways businesses are protected by things like insurance is then a good way to understand how governance work.

There are lots of other ways to look at governance. Everyone can think about what also can be a part of governance. Governance is a word that can be applied t many things. Looking at a few of these things can help create a picture of what it is and how it applies to everyone around the world.

Marwin Ramos

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2 Comments

  1. Jesse Kaiyeepu 4 years ago August 31, 2017

    I ready love this article, it’s actually educative , especially for country like Liberia which I’m a citizen. May I use the article to educate people about this unique topic? I appreciate your article.
    Thanks & regards

    REPLY
    • Right for Education 4 years ago September 4, 2017

      Dear Jesse! Many thanks for your comment and we love to hear that you found the article educational. Please share it on your social media and spread the message! The more people we can reach with educational content, the better.

      REPLY

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