The Commerce of Property Insurance
Property insurance is considered as an important component in the world of commerce because the economy would literally grind to a halt if it not were for affordable insurance. Many types of businesses could not operate without the essential protection it provides and individuals could not possibly finance their homes without it. The ability of the property insurance industry to provide financial protection and security is determined by the net worth called surplus.
Growth in surplus for every insurance year cycle allows insurance providers to meet growing demands brought about by economic growth and changing society needs. This surplus allows provides a cushion for companies to overcome unfavorable weather during lean years in the cycle. The ability to attract and maintain capital is what is needed in order to give financial protection based on governing capital flows.