International indebtedness arising from insurance transactions


A lack of national insurance markets and institutions causes countries to lose foreign exchange and investment capital.


[Developing countries] Insurance costs involve a net external debit in normal years to practically all developing countries, whether measured in terms of net indebtedness or of physical flows of funds. The incidence of such flows is clearly and inseparably bound up with the lack of a significant local insurance sector, the absence of a substantial statutory framework for insurance, and with shortages of adequate local forms of investment for an insurance portfolio. These deficiencies are bound up one with another, and their rectification tends often to be almost simultaneous.

Commerce Credit
Commerce Insurance
Problem Type:
E: Emanations of other problems
Date of last update
04.10.2020 – 22:48 CEST