The insurance industry has been around for hundreds of years. Many moons ago, some forward thinker figured out that if the risk of loss was spread among many different people, that losses wouldn't be so devastating to one particular individual. If each individual paid in a small amount to a pool of money in exchange for protection from huge losses, then a certain level of assurance and certainty would be received by each individual. No single individual would be completely wiped out if a disaster occurred. Thus, the idea of insurance was born. Affordable insurance is available today due to this idea.
With insurance, individuals seeking coverage pay an annual premium to a third party, the insurance company in this case, in exchange for a promise of protection. Mathematical geniuses known as actuaries estimate the approximate cost that each person should chip in so that the company can afford to meet its obligations. Actuaries are able to make these calculations by estimating the anticipated losses based on historical experience. Investment experts take into account the investment returns that the insurance company can receive from holding millions of dollars of customer premium payments. Marketers can assess the number of customers that can be expected to do business with the company. Together, affordable insurance can be achieved when all of the elements work effectively.
Today's insurance companies operate in an environment rich in data. Property and casualty loss rates have been tracked for decades, so companies today can estimate with tremendous accuracy the likelihood of any given building to go up in flames. Companies understand what hazards can increase the probability that a loss will incur. Insurance companies are also heavily involved in risk management, which involves actively reducing the risk that losses may happen. Risk management can involve offering incentives for usage of smoke detectors and sprinkler systems, performing professional inspections of properties, and conducting educational sessions on how to prevent fires. On the life insurance side, actuaries can estimate with great certainty the lifespan of any given individual. Actuaries understand what health factors to look for that influence a person's number of years on the Earth. These health factors can include smoking, family history, health symptoms, and engaging in risky behavior such as motorcycle riding or certain water sports. The result of all of this knowledge is much cheaper life insurance. Insurance companies know how to earn just enough profit to keep the company earning an above average return, while also competing with other companies in terms of price. In the past 10 years due to the Internet, many traditional agents have been cut out of the picture, which has further reduced the cost of insurance. Agent commissions on insurance are typically extremely high, sometimes reaching as high as 50%. Companies like Geico allow consumers to communicate directly with the insurer, thus drastically reducing commission costs and therefore the total cost of insurance.
Affordable insurance is possible today more than ever. If you think you're paying too much for your insurance, you probably are. It's advisable to compare insurance costs and make the switch if a cheaper policy is available.
Bristy Voelkel has been an insurance specialist for the past 4 years. She has worked with several top insurance carriers, saving individuals shopping for free insurance quotes. Bristy is standing by waiting to assist you in comparing affordable insurance quotes & saving you hundreds. Get started today!
With insurance, individuals seeking coverage pay an annual premium to a third party, the insurance company in this case, in exchange for a promise of protection. Mathematical geniuses known as actuaries estimate the approximate cost that each person should chip in so that the company can afford to meet its obligations. Actuaries are able to make these calculations by estimating the anticipated losses based on historical experience. Investment experts take into account the investment returns that the insurance company can receive from holding millions of dollars of customer premium payments. Marketers can assess the number of customers that can be expected to do business with the company. Together, affordable insurance can be achieved when all of the elements work effectively.
Today's insurance companies operate in an environment rich in data. Property and casualty loss rates have been tracked for decades, so companies today can estimate with tremendous accuracy the likelihood of any given building to go up in flames. Companies understand what hazards can increase the probability that a loss will incur. Insurance companies are also heavily involved in risk management, which involves actively reducing the risk that losses may happen. Risk management can involve offering incentives for usage of smoke detectors and sprinkler systems, performing professional inspections of properties, and conducting educational sessions on how to prevent fires. On the life insurance side, actuaries can estimate with great certainty the lifespan of any given individual. Actuaries understand what health factors to look for that influence a person's number of years on the Earth. These health factors can include smoking, family history, health symptoms, and engaging in risky behavior such as motorcycle riding or certain water sports. The result of all of this knowledge is much cheaper life insurance. Insurance companies know how to earn just enough profit to keep the company earning an above average return, while also competing with other companies in terms of price. In the past 10 years due to the Internet, many traditional agents have been cut out of the picture, which has further reduced the cost of insurance. Agent commissions on insurance are typically extremely high, sometimes reaching as high as 50%. Companies like Geico allow consumers to communicate directly with the insurer, thus drastically reducing commission costs and therefore the total cost of insurance.
Affordable insurance is possible today more than ever. If you think you're paying too much for your insurance, you probably are. It's advisable to compare insurance costs and make the switch if a cheaper policy is available.
Bristy Voelkel has been an insurance specialist for the past 4 years. She has worked with several top insurance carriers, saving individuals shopping for free insurance quotes. Bristy is standing by waiting to assist you in comparing affordable insurance quotes & saving you hundreds. Get started today!