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Insurance
Principles of insuranceIndemnificationInsurer’s business modelHistory of insuranceTypes of insuranceHealthDisabilityCasualtyLife PropertyLiabilityCreditOther typesInsurance financing vehiclesInsurance companiesGlobal insurance industryInsurance insulates too muchClosed community self insuranceComplexity of insurance policy contractsRedliningInsurance patentsThe insurance industry and rent seekingCriticism of insurance companies
Principles of insuranceIndemnificationInsurer’s business modelHistory of insuranceTypes of insuranceHealthDisabilityCasualtyLife PropertyLiabilityCreditOther typesInsurance financing vehiclesInsurance companiesGlobal insurance industryInsurance insulates too muchClosed community self insuranceComplexity of insurance policy contractsRedliningInsurance patentsThe insurance industry and rent seekingCriticism of insurance companies
Criticism of insurance companies
Some people believe that modern insurance companies are money-making businesses which have little interest in insurance. They argue that the purpose of insurance is to spread risk so the reluctance of insurance companies to take on high-risk cases (e.g. houses in areas subject to flooding, or young drivers) runs counter to the principle of insurance.Other criticisms include:
* Insurance policies contain too many exclusion clauses. For example, some house insurance policies do not cover damage to garden walls.
* Many insurance companies now use call centres and staff attempt to answer questions by reading from a script. It is difficult to speak to anybody with expert knowledge.