Quote:
|
Originally Posted by cyklone
Insurance may not be a scam, but it is little different to mob activities. Insurance companies bet that nothing will go wrong with you over the insured period, you bet that it will. They set the odds and charge you accordingly. If they are wrong and you win they up the ante on the next bet. How is this different from the illegal gambling activities that the mob have run for years. They like to justify their activity by saying that it "spreads the risk" and it does, but they make a very healthy profit and the odds they offer are usurious.
|
I'll agree that there is definitely an element of gambling to insurance. As a matter of fact, that's one of the reason why I do it for a living. There's one big difference that make you absolutely wrong - if you don't like it, you can walk away. You can go find another company if your company ups the ante.
And actually, insurance companies don't set the odds. Either Mother Nature does or people do. Mother Nature does it for First Party (property) coverage, and Third Parties (casualty, health, life) set the rest. There are well over 100,000 insurance companies in the world, and almost all of them do a great job protecting their policy holders. If you don't like yours or if the rates change, go find a new one.
Let me know if I need to do a better job of explaining it, but the above is totally wrong.