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Insurance is awful by design

Insurance is almost certainly one of the most hated areas of business in the country. Think about it. People pay a lot of money and rarely get anything back. Even when they use it, they often have to fight with the insurance companies to get what they ought to get without any issue. It’s an ugly business model, even if it’s a necessary one.

This is true across the board with insurance. Whether it’s medical, auto, dental, home, or anything else, insurance companies make money by keeping fees as high as they a raise them and paying out as little as they possibly can. In the modern business climate which has to show constant, hyper-growth, that can mean insurance even goes beyond the legal and starts working in bad faith with its customers, paying less than it legally has to.

It doesn’t have to go that far for insurance to be a pretty horrible business though. Who hasn’t encountered a headache at the expense of their insurance company?

A car accident can mean months of phone calls, demands for absurd amounts of documentation, and then higher rates just to get a payout, and that’s when the insurance company’s client wasn’t at fault.

With medicine, it is even worse because medicine is so necessary to everyone and everyone needs insurance from time to time. There, it can also be long phone calls, documentation, complaints to get the insurance to pay for crucial medical care. Some have even died because insurance companies couldn’t decide whether to pay for surgery or not.

The flaw is in the system itself. Insurance only kicks in when people really need it. Insurance companies are massive bureaucracies that drag their feet in order to get the best deal they can on everything. So, when something important comes up, like surgery, the difficulties before, during, and after can add massive unneeded stress.

Unfortunately, there are few workable solutions, at least across the board. For medicine, other countries have gone to government-run healthcare and turned insurance companies into luxury parts of medicine. For instance, giving birth in Great Britain may mean sharing a room with other women. This would be free and insurance free. A family can choose to buy insurance, however, and if the woman gets pregnant, she would then be able to get a private room through her insurance discounts.

That option may solve the problem of health insurance, but what about all the other forms? Insurance is vast and various and used to protect everything from possessions to homes to businesses to investments. The government could not and should not be in charge of ensuring all those objects.

Which means, it all likelihood the awful insurance process will continue forever. Hopefully, some increased oversight can be introduced to speed things up and keep things more honest, but even then, the overall pain in the neck element will still be present, even if less prevalent.