Improve Equity is also a result of good social risk management. If society values a more equal welfare distribution across individuals, better risk management can enhance the welfare distribution and societal welfare without actually re-distribution income among individuals. Under the likely scenario that the lower income strata are more constrained in their ability to smooth consumption, improved risk management arrangements eases this constraint and thus helps improve welfare more for the lower income segments leading to a more equal distribution of individual welfare(Holzmann, 1990).