I usually believe in things which are simple and logical. This makes me feel more connected to nature.
Looking into the history of America it looks to have run in a more logical way then most of the other countries and the results are well known. Well last few years have been exceptions.
One thing that always intrigued me is the notion of Insurance. Insurance does not really produce any tangible product or goods. Then why should people pay for it to someone who has worked nothing in real sense.
The insurances are valuable to make people feel a sense of security but since there is no real effort required in giving insurance it does not justify private companies owned by few people making so much money out of it, just because they already have a big pool of money and they know how to play on peoples fear.
If you look at it from high level insurance companies are making money by convincing people that things can go wrong and selling something that does not exist in reality. Moreover during any catastrophic event these companies declare bankruptcies or demand bailout. And ultimate looser in any case are the general public.
This can very well be taken care by government either directly by means of automated computer system or indirectly by encouraging and supporting Non-profit organizations to venture into this field. I think later would be more appropriate.
If you add up the total amount of money the insurance companies have made so far it would always be more than they have paid out the people when in need. Because ultimately what insurance companies do is collect premium money from large number of people and give a part of it to few who claim and the remaining they pay to its shareholders or owners. In the entire process there is no value produced.
SUMMARY – Insurance is an engine which by doing no real work sucks the money out of masses and put it in few peoples pocket.
PROPOSAL – Engine like this should be encouraged to be run by non-profit organizations.
Why not to let the insurance be mainly run as a cooperative or as non-profit organization to help people keep most of their hard earned money to themselves.
Let us take a real life example:
I have paid around $3000 premium for car insurance in last 3 yrs and I have never claimed anything, what have I got in return? Nothing!…
Out of this $3000 may be around $100 is used to pay to those people who had claimed, around $50 to pay the salary of the employees and for administrative work and $1000 for Sales. Remaining around $850 has gone to few people’s pocket and tax. This certainly doesn’t look reasonable or right. Ideally most of $850 should have come back to me.
Instead let us imagine there is a new company Cooperative Insurance Of America (CIOA), which is backed by Govt. promise of fund supply if needed or initial money pool.
It’s Vision – let people have peace of mind and most of their hard earned money to themselves.
It’s Mission – it goes to market with a new Insurance plan, which is more of an investment than just premium payments.
Following rules/guidelines apply:
1) CIOA works and pays to its employee and executives as good as or better than the other Insurance companies in the market, to remain very competitive.
2) It has the insurance packages similar to other companies in the market and it evaluates, negotiates and sets the premium exactly as other insurance companies in the market do.
- Optionally CIOA has to produce certain preset results.
3) The net profit before tax of the CIOA is put into investments (community development, other businesses etc) on behalf of premium payers. So the remaining $850 and later on much more (as the people find it more reasonable the sales expenditure $1000 will go down drastically) as shown in above example, will show back into my account with CIOA
4) There would be set of policies and other tax conditions (to prevent loss and abuses) as to when the premium payers can cash their investment plans – I have worked out some details if anyone interested.
So, what am I gaining as an individual? – I know my money is not going into pocket of some already very rich guy. I feel that I am helping a system which is build to take away my and others security concern for bad times, and in turn we are helping each other and our community.
What is CIOA gaining – I and most of us would certainly prefer to buy insurance from CIOA, so it’s gaining business, it can employ more and more people as needed. It serves as a perfect example of Govt. initiative to help community compete with fake businesses which do not produce any tangible value.
I hope this gives a gist of what I am trying to say here. To really make this happen, we need – few volunteers who want to do something for community and a little Govt. backing and loan.
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Tags: Solution for Insurance problems
You are such an ill-advised dumb ass! Get proper facts before making an argument like this.