You are welcome to Naijafunds.com
Here I will be Reviewing all you need to know about “Insurance business if it’s Legit or Scam company”.
It’s pretty simple really. You pay them a lot of money to protect you, in case something happen like a car accident or you get sick. They are one of the richest companies on earth, and they gouge the consumer. whenever you need them they will do everything that they can to invalidate your claim, or at least make it very hard to get your money.
The policies are written in ways to limit your use as much as possible. If you somehow maximize your usage on their policies, they may revoke your policy overall and declare you as too much of a liability or even charge you an arm and a leg.
A little of the “insurance should pay for everything” mindset is the insurance companies’ fault. Health insurance companies realized that customers who had regular checkups were less likely to develop expensive conditions further down the road, so they were willing to pay for those routine expenses to encourage that practice, for example. But then it spreads to other services, and people who don’t really need those services use them anyway because “why not? It’s free!” or “I’m paying for it anyway.” Anyway, very good description.
You seldom deal with your insurance company unless something bad is happening. The rest of the time, it’s just a bill you need to pay and see no benefit for.
Generally, they’ll find any technicality they can to pay you as little as possible or, if at all possible, nothing at all. Of course this is precisely when you need them. What they’re doing isn’t illegal because they find a legal/technical reason to avoid paying you. It’s frustrating though.
And “oh, you were in a car accident?”, “sorry about your luck, let’s raise your premiums so you can pay it all back and then some”.
In short, very wealthy companies making trillions from peoples’ fear and contributing to their suffering.
Is insurance a legal Scam.
Yes, insurance is a massive legal scam. It has state and federal legal codes surrounding how it can be implemented because it started as a scam business.
Is insurance business a Scam.
There are insurance scams but the business of insurance is not a scam. It is frustrating to pay premiums for years and have a contested claim.I also think the insurance industry could do more to provide services to the ordinary policyholder as part of the package. Insurers mostly assume that all the individual cares about is price. But that’s not the same as saying that insurance is a scam.
Insurance is different from banking or financial investments; it does not usually return money if you don’t use it. I’m speaking of non-life insurance here. Your premium buys a promise to pay in the event of some future adverse event, fire, burglary, car accident. That may not happen, but if it does then you are likely to get back far more than your premium. If somehow you have injured someone else, the settlement for motor or public liability, could run into six or even seven figures.
In principle, you are buying financial security and peace of mind. It may also be a lender’s requirement because the lender wants to make sure it’s exposure is covered in case you have a loss.
Your premiums are being pooled with many, many others to spread the impact of losses, and that might seem unfair except that sometimes the loss may be yours. For wealthy people, household insurance may not be worthwhile because they can afford a significant loss, although I understand quite a few wealthy people do buy insurance because of the additional advice and services that come with it.
So, no insurance isn’t a scam. As other explain, it is a valuable service but insurers are usually for-profit companies in a competitive market which I believe can affect their attitudes.
Is insurance business Legit.
There are insurance scams but the business of insurance is not a scam. It is frustrating to pay premiums for years and have a contested claim.
How did I start my insurance business.
Starting an insurance company requires a significant amount of start-up capital. Quite frankly there a very few new insurance companies now-a-days because most insurance companies don’t make any underwriting profit (they don’t make money off of their insurance products) they make money off of their investments with the premium they take in. With that being said much of the premium they take in has to be handled according to regulations (e.g. they must follow the Kenny Ratio, which states every $3 of gross written premium, $1 must be liquid)
However there are some companies that are starting up, like Berkshire Hathaway Specialty Insurance. They were funded with hundreds of millions of dollars. Ideally you would want capital between $5-$10 million dollars minimum, but less is feasible.
I would suggest either starting an agency or brokerage and collecting a nice 15% commission on sales, or simply an investment company that allows you to make investment income without all of the liquidity restrictions necessary in the insurance industry.
A bit of a scattered answer, but as a consultant I tried to answer the question I think you meant to ask – not the one you did! (or I’m just an asshole and gave you 10% of useful information for your college paper.)
Thank you for stopping by to read this Insurance business Review. If you think “insurance business” is Legit or Scam, kindly share your personal experience about this platform with us in the comment section below.