Efect

Insurance companies may have different effects on society by way of changes that pays for losses and damages. First, the increase in fraud, on the other hand, helps businesses and individuals to prepare for disaster and disaster impacts on both households and communities to reduce.

Insurance can affect the risk of losses due to moral hazard, insurance fraud, and insurance companies precautions. Insurance scientists have used the rules of moral hazard with increased losses due to negligence is not intentional and moral hazard because of the increased risk of negligence or deliberate indifference. reference The insurance company tried to cover up negligence inspection address, the provision of certain types require maintenance policy and any rebates with loss mitigation efforts. Although insurance may support the theory of investment losses, some commentators argue that the insurance practice to discontinue lost control measures historically aggressive - particularly to prevent catastrophic losses such as hurricanes - as fears over interest rate cuts and litigation. However, since around 1996, began to play an active role in the insurance limit losses, such as building codes.