The Proximate Cause of Insurance Hate

This week, I have heard more people talk about the fact that they hate insurance.  I try not to take it personal.  Of course, there are people out there that say that they hate anything to do with insurance, including brokers, and well, that is a simple case of throwing the baby out with the bath water.  Hate is really quite blind and it can be cured with a little bit of reasonable thought. 

So you say you hate insurance?  Why is that?  Yes, it costs money.  But so does a vacation to Barbados.  So do you hate Barbados?  No, because it brings you warmth, comfort, and relaxation.  How about that nice steak dinner that you had at Morton’s last night?  That wasn’t cheap, so you must hate it right?  Well, no because it was delicious and it left you feeling satiated.  OK, how about that new Bimmer you leased last month – isn’t that $500 payment boiling the hate from the pit of your stomach?  Oh, so the fine leather seats and the neck spraining horsepower invigorate you and rev up your heart beat, so no hate there.  So why the hate for insurance?

Going through the process of structuring an insurance renewal once a year isn’t much fun.  You have to collect all sorts of information for the underwriters.  You have numerous meetings with funny looking insurance brokers (except for me) and answer the same questions, over and over.  You have to strategize on how you are going to keep the premiums under control while not sacrificing coverage.  You have to meet with loss control inspectors and answer the same questions over and over again, often repeating this for days on end depending on how many insurers are quoting on your insurance.  On top of all of that, you have to spend money on something that isn’t really tangible, other than a stack of paper with a bunch of legal jargon in it.  The monotony, the repetition, the expense!

But when disaster strikes, that stack of paper that was so painful to produce suddenly provides the same enjoyment that you got out of the realxing Barbados vacation, the tasty Morton’s steak, and the sexy Bimmer.  You get a warm feeling that you are going to be OK, and you can relax.  You can feel satisfied because something that you prepared for actually worked for you (and you can still afford a tasty steak).  And you will feel invigorated to know that you win and your company will survive on.

So really, it isn’t insurance that you really hate, even though you don’t know it.  It is the montony, the repetition, and the expense that you hate.  I feel better already.