THE PROBLEMS WITH MODERN INSURANCE

These days, when you hear the word insurance, there are probably all kinds of associations that you immediately make, and more than likely a good amount of those immediate thoughts are going to be negative. There is no question that  today's insurance landscape is riddled with obstacles that cause us to wince: multi-billion dollar corporations who seem motivated by greed, systems that are more predatory to the consumer than helpful, endless amounts of paperwork, and  hours spent on hold with claim's agents. Indeed, it can be difficult to look past these things to see the tr ue value that insurance has for us as individuals and a society. But the principle and theory of insurance is as ancient as the first  community, and though the practice of insurance has evolved in some negative ways, the principle is still inherently beneficial.

THE VALUE OF INSURANCE

It all starts with what we have, and the realization that whatever we possess — whether it be a flat screen television or our personal health — can be ruined or lost. This is a reality that is hardwired into us, something that everyone understands as part of our nature. That's why if you trace insurance to its roots, you'll find it appears at the same time as civilization. Of course it was much simpler back then than it is now. Long before premiums and deductibles, people formed communities for the benefit of having insurance. The communal proposition was that if you had a house and it burned down, or if your livestock or farm was wiped out for some reason, than all of your neighbors would chip in to help you recoup your losses. The only payment for this insurance was that you agree d to help your neighbor in turn if he fell on hard times. If you look insurance in these terms, and how it existed in its simplest form, it's really a fluid idea and a wonderful notion.

INSURANCE AS WE KNOW IT

As technology and humanity advanced, we were able to accumulate more wealth, but thereby we accumulated more risk. And as long as those risks could be quantified, than they could be insured. Thus, the roots of modern insurance were planted, and would eventually evolve into the system that we all know. Of course, there is now insurance for anything you can imagine, besides the obvious coverage for your home, car, health, life, and property; you could be insured against terrorist attacks, botched travel plans, sick pets, and a multitude of other risks. If you have something of value, no matter what it is, chances are that you will be able to find somebody to underwrite the risk for it.

APPRECIATING INSURANCE TODAY

All of these layers and layers of insurance have probably worked to mystify the basic, positive principles of insurance. And undoubtedly they have served some individuals and corporations who are more concerned with making money than the welfare of the people they insure. However, the important thing to hold on to is that despite the connotations that come with the insurance industry, the principle of being insured is still beneficial, and insurance is still a communal proposition. Understandably, it's not as easy as making an arrangement with your neighbor, but it's the same principle. We are still pooling our resources together to help the person who's down on their luck, with the assurance that we will receive the same treatment in return. The difference is that we are not using our own hands to help, and our neighbor could now be someone who lives on the other side of the world.