The role of the insurance in the economics and financial system of a country

In this article we discuss the insurance system as a measure of reducing the risk consequences (situations). Insurance means activities on the compensation of the resulting damage in case of occurrence of the insured event (insurance companies give compensations only if the situation is qualified as an insurance case). The main types of insurance are personal insurance, insurance of property, economic risks, civil liability insurance. The author emphasizes the importance of insurance in a country's financial system and economy as a whole, as it is a powerful rod support for small and medium business, therefore, affecting the development of economy.