The insurance industry provides enormous social and economic benefits to society, including the following:

indemnification for loss

reduction of worry and fear

source of investment funds

loss prevention

enhancement of credit

The major social costs of insurance include

a) cost of doing business,

b) fraudulent claims, and

c) inflated claims.

Think about the social and economic benefits, and the costs, which you have encountered in your personal experiences when dealing with private insurance companies. Describe whether you concur with the authors of your textbook who indicate, The social costs or insurance can be viewed as the sacrifice that society must make to obtain these benefits.

Explain your answer.