By: Scott Graulich
The Insurance industry is all based on one factor- managing risk. Insurance companies use statistical analyses to determine the chances of accidents, hurricanes, floods, fires, etc. By studying these statistics they can determine how much to charge customers in order to make a profit. When there are a lot of natural disasters in any particular year, insurance company profits go down and may even show a loss.Basically Insurance Companies hope that life is boring for it's customers-- which means that no one has any natural disasters or accidents to worry about. Generally this type of situation makes the customer and company very happy. However, human nature being what it is, this happy customer starts to wonder why they are paying all that money for nothing. Actually, what we pay for Insurance is a good nights sleep.
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Good points, sometimes having insurance is worth overanalyzing the chances of a disaster or issue occurring.
ReplyDelete-Andrew Pia
In the article it is stated that customers wonder why they are paying all that money for nothing. I don't think the money paid is for nothing. It is at least for your conscience and that you can feel safe and that is something I am willing to pay for.
ReplyDelete- Stefanie Marty
A product can be a good or a service.The insurance is a promise we pay for to have ourselves financially backed up when we have troubles.Therefore it is not nothing.
ReplyDelete-Ka Lee Angel Lee