Question

Why is the insurance known as a tertiary industry?

Answer 1

Because it is a service. It not used create something it just help primary and secondary sector by providing different kind of services

Answer 2

Answer:

Since, Insurance has the capability of removing barriers of risk of loss due to theft, accidents, injury, etc., it provides services of risk management to the manufacturing units in primary and secondary sector and it doesn't produce commodities of its own , it is recognized as a tertiary industry.

Explanation:

Tertiary Sector-

The secondary and primary sectors benefit from the tertiary sector's development. Although the tertiary sector helps with manufacturing, it does not actually generate much on its own.

Features of Tertiary Sector-

• Activities in this sector contribute to the growth of the primary and secondary sectors.
• The tertiary sector doesn't create any products, but it helps and supports the manufacturing process.
• The tertiary sector facilitates wholesale and retail sales as well as the transportation of products made in the primary or secondary sectors.
• Assists with godown storage of products and offers financial services.
• Insurance, Teachers, doctors, and other professions not involved in the manufacture of commodities are a part of tertiary sector.

Since Insurance has all of the above mentioned feature in it, hence it is known as a Tertiary Sector.

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