We might not realize it, but Insurance is all around us. It is not a subject of our every-day conversations (unless we are in the field), we cannot see it and we definitely can’t taste it! Even if a part of our salary goes to our insurance policies, for most of us, the concept of Insurance exists as a blur background in our minds. It only becomes “a thing” when we are in need for the covers we have been paying for, that is, in case of a claim.
Objectively, the insurance industry draws its lines in all society institutions. It has a big part in a society’s economy, health system and state laws.
So, lets create an image of our world without Insurance:
Driving would be a high financial risk. Accidents happen all the time. The costs of fixing a car are huge, so who could afford fixing both cars involved in an accident, or furthermore, the possible medical expenses, allowances or legal expenses?
You would think twice before buying a house. Insurance gives the financial comfort saved for a “rainy day” … or in this case, a “fiery day”! Buying the house is one thing but having to rebuild it and recover after an unfortunate event, is another thing. The ownership of a house would be an advantage only the really wealthy would enjoy.
The economy would be poor. Insurances are a relief to a country’s wealth. Insurance companies through the plans they sell, they undertake health costs, pension costs and other expenses that could be a burden for the society’s economy. At the same time, because the insurance industry is strong, it helps maintain the money flow and it expands the job market, giving work to people who in other circumstances would have been unemployed.
Taxes would be higher. Without the support given from all the insurance plans mentioned above, we would have to give more to the state without the possibility of claiming that money back in case of a hazard, in opposition to the money-rebound system that characterizes the current Insurance structure.
Using our own, personal imagination, we can see additional imperfections to our contemporary world with the absence of the Insurance. Therefore, even if we don’t realize it in the first place, the concept of Insurance is a powerful force that exists all around us and protects us in more ways than just the claim cases.