Misconception no 1. For many, insurance is often perceived as “something intangible which someone suggests they should buy at a particular point in their lives, therefore they feel compelled to spend money on it for a peace of mind”. A necessary evil.
Misconception no 2. When I first pursued my actuarial course a decade ago, admittedly, I did not really buy into the whole insurance mechanism. It felt a little like glorified gambling, that the insured uses their premiums to bet that something bad will happen to them, and the insurance incumbents bet against it.
Misconception no 3. Add in the common negative stigma that comes with insurance, and the fact that when I reveal my line of work to people, they become slightly guarded and apprehensive, as they are afraid I am an agent who would hard-sell to them.
Misconception no 4. Insurance companies mostly use “fear” tactics to create the sense of urgency and open the window of purchase in the customers.
Misconception no 5. Conflict of interest is insurance incumbents’ business model. Insurance corporations earn profits by breaking the promises they make to policyholders, and are protected by complicated jargons, exclusions, terms and conditions, to avoid paying a claim.
My turning point happened in early 2016, when I discovered, that stumbling into this industry was never a fluke. Insurance, in its purest form, stripping off centuries’ worth of commercialization and taking out the wrapped industry juggernaut, resonates with my life goal of moving and enriching the lives of the wider community.
The basis of insurance is about pooling small money from a lot of people, to help a few with misfortunes. The notion of insurance serves as a stepping stone to allow individuals and businesses to go where they may otherwise not dared to go. The very nature of insurance is to solve people’s problems and manage their crisis.
Whether we are conscious of it or not, risk permeates our lives, even as we evolve and change our behaviour. So the concept of insurance will never lose relevance. Yet, as the value of insurance, especially on the social and economic standpoint, is so widespread, why is the industry getting more and more misunderstood? How can we present insurance relevance to the people, in a way that has not been done before?
I ask myself, how could I play a part, regardless of wearing a corporate or an entrepreneurial hat?
