Insurance is widespread and
even those among us who do not get coverage where it could
be useful are still aware of the reasons why it makes sense.
If money were no object then few would go without it, as
uncertainty lurks around every corner and all of us, however
modest our lifestyle maybe, have something to lose.
Insurance has grown,
developed, changed and taken on many new features over the
last twenty years. Some of this is due to consumer habits
and demands, some to forward thinking and innovation, and
some in response to the internet and the way people now
search for insurance.
In times past, insurance
was associated with cars, homes and health issues but now it
has branched out into a variety of areas. As such, athletes
and movie stars insure body parts, businesses take out
insurance against bad debts and long distance travel is
rarely contemplated without travel insurance. These are
merely a few to name, in an ever expanding industry.
At its heart though,
insurance is still about basic desires and needs, the urge
to protect what you have worked so hard for and the desire
to not be left with nothing should accident or misfortune
come your way.
In economic terms,
insurance is about hedging your bets against the risk of a
possible loss. But in reality, many people do not want to
entertain the notion of risk; as a result many will take out
insurance to ensure they are not risking the loss of that
which they hold dear. Indeed, it is about taking risk out of
the equation and replacing it with comfort and peace of
mind.
However, it is perhaps not
surprising that the attitudes people hold to insurance are
usually defined by their priorities. Of course, many will
feel far more deeply towards their homes than their luggage,
thus travel insurance for a short holiday nearby is
optional, whereas taking out
home insurance is much more of a necessity than an
option.
It is important to
understand that some forms of insurance are mandatory, such
as car cover for example. Curiously, some fringe industries
have cropped up in recent times such as pet care insurance,
classic care insurance, and flood insurance.
And, sometimes new forms of
insurance appear in response to whatever social and economic
conditions are making most of the headlines at a particular
time. Environmental Impairment Insurance for example
provides coverage against the environmental risks arising
from operating a facility or factory in natural
surroundings.
Insurance is advancing year
by year but the underlying motives for purchasing remain the
same. The same questions about protection, placing value and
attitude to risk occur and the responses to these questions
can be seen in the amount of cover sought.
Insurance
- Choice Or Obligation? 