Updated on: 7/23/2014
An Insider's Look At The Insurance Industry
With trillions of dollars in assets at stake and the highest-paid CEOs in the country, the U.S. insurance industry is one of the most profitable industries in the world. As a whole, the industry sees profits of approximately $30 billion each year. That’s profits of $30 billion each and every year.
Many people familiar with the insurance industry believe it is guilty of some of the most deceptive advertising practices ever and also masked by clever, creative advertising. The average person knows very little about insurance and relies mostly on common myths (or word of mouth), insurance agents (sales people), and/or insurance company websites for advice and recommendations on what types of coverage to buy. The potential for deception is great when the advertiser is also the educator—the one telling you what they want you to know and none of what they don’t.
Despite the overall financial success of the industry, over the last 20 years the insurance industry has stopped being a safety net for the public and instead has become a deceptive, complicated, and difficult to navigate maze. For example, common business practices by many carriers include postponing payment of legitimate claims, rejecting claims altogether without a legitimate reason, and defending against legitimate claims by forcing claimants to enter into time-consuming and expensive litigation. Many insurance companies will also engage in other unethical and outright deceptive business practices in an effort to maximize company profits while at the expense of policyholders.
I wrote Unsurance because there is no such thing as a 'good neighbor' who is 'on your side' with 'good hands' holding an 'umbrella' that will keep you and your pet gecko dry when mayhem strikes. Unfortunately, you'll have to take 'responsibility' for yourself—which also means that you may have to hire a lawyer. I think that people deserve to know the truth about the insurance industry and how it works.
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References in quote:
Travelers Insurance - Umbrella logo.
Geico Insurance - Gecko mascot.
State Farm Insurance - Tagline 'Like a good neighbor..."
Allstate Insurance - Tagline "You're in good hands."
Nationwide Insurance - Tagline is 'On Your Side"
Liberty Mutual - Tagline "Responsibility"