ROLE AND SIGNIFICANCE OF INSURANCE IN INTERNATIONAL TRADE IN INDIAN CONTEXT

The insurance sector plays a critical role in international trade by providing risk mitigation services and products to businesses engaged in cross-border transactions. The risks associated with international trade can be substantial, ranging from political risks to physical risks, and insurance companies offer a variety of policies to help mitigate these risks. For example, export credit insurance protects exporters from the risk of non-payment by foreign buyers, while political risk insurance provides coverage for losses due to political events such as expropriation or war. Cargo insurance protects goods in transit from physical damage or loss, and marine insurance covers risks specific to transportation by sea. By providing these essential services, the insurance sector helps to facilitate international trade by reducing uncertainty and increasing confidence among businesses. This, in turn, helps to foster economic growth, create jobs, and promote international cooperation and understanding. Insurance companies also provide services such as risk assessment and management, as well as guidance on compliance with international trade regulations. In addition, insurance policies can be customized to meet the specific needs of individual businesses involved in international trade. Overall, the role of the insurance sector in international trade cannot be overstated, as it is a vital component of the global economy and a key enabler of international commerce. The insurance sector plays a vital role in facilitating international trade by providing the necessary protection and support to businesses engaged in cross-border transactions.