The viability and relevancy of insurance products sold to individuals and businesses
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Insurance is simply a product to transfer risk from a person who cannot bear the risk to a person who is willing to bear that risk. To compensate the latter, the former pays a commission known as an insurance premium.
Surely, insurance products are quite relevant. For example, a person may not be able to bear high medical costs were the person to fall sick. So he goes ahead and buys a medical insurance thereby transferring this risk to the insurance company.
However, what needs to be seen is whether one has bought the right insurance product that suits his / her need. There is a lot of misselling that happens in the market. If that is the case, surely the insurance product may be irrelevant.
Surely, insurance products are quite relevant. For example, a person may not be able to bear high medical costs were the person to fall sick. So he goes ahead and buys a medical insurance thereby transferring this risk to the insurance company.
However, what needs to be seen is whether one has bought the right insurance product that suits his / her need. There is a lot of misselling that happens in the market. If that is the case, surely the insurance product may be irrelevant.
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