What Does A World Without Insurance Look Like?
It really never hit me until I heard him say it.
“What we are going through Jason, is nothing more than a business income problem.”
This is what Chris Burand said to me on my podcast last week and it rocked my world and set my mind a blaze.
It was mind-blowing if you are an insurance geek like me.
Many are just hearing this term “business income” for the first time including the many business owners who either have it and don’t know it, or know what it is and are wondering why they don’t have it.
It doesn’t matter really, because the pandemic is not going to trigger coverage anyway….but that is another topic that you can find many articles on.
What you will not find articles on are what I would like to bring to the attention of many.
The world as we know it and need it to be, can’t exist without insurance.
It’s true and I’ll prove it.
If you are in insurance, then you know this, but if you are the other 99% of the world you may have never thought about it and I can see why, it’s insurance.
Any time that our lives are disrupted, changed or threatened the insurance industry always steps up to design products to help protect our way of life. It’s vital to life as we know it.
What is Insurance?
In simple terms insurance is a transfer of risk from one person or company to another.
Let’s say a real estate developer and contractor in New York city wants to demolish a building and then construct an 80 story building that is surrounded by 50 story buildings.
It’s a typical construction project in the big city and that could never happen without insurance.
What if the building they are building falls over into the other buildings damaging it while at the same time harming or killing people around it? That could cost millions if not billions and all the risk is on the developer and contractor.
So the role of the insurance company is to analyze the project and charge a premium for the risk they are willing to assume. The risk is then transferred from the developer and contractor to the insurance company for a price.
Now everyone is covered and protected in case something unfortunate happens and the job can go on.
Literally tens of millions of contracts and projects like this are happening all across America everyday spurring our growth and they could not happen without insurance.
Think life insurance…same thing.
People were dying and leaving their families with debt, taxes and loss of future income from a person dying early and was the breadwinner for the family.
What did the industry do in the face of this issue as a society? They stepped up and created a product that for a premium they would pay a lump sum in the event of death. Life insurance.
I could go on and on but I want you and everyone to see…..
Life is not what we know it without insurance and for many of us just looking out into the world it is hard to see..
Except for right now.
If you want to see what a world looks like without insurance just look at the world right now.
The coronavirus pandemic in less than 3 weeks has collapsed the world economy and not because it is spreading and killing, it collapsed because our economy is built on things being bought and sold and us living our lives as they are.
And when that doesn’t happen the world stops…but it doesn’t have to be that way and how you fix it is with insurance products.
Insurance companies right now are working on products for businesses and consumers so that in the event of this happening again for a premium they will assume the risk, keep the doors open and the bills paid!
We may not be able to stop a pandemic from happening but we can stop it from ruining our lives and economy and the only thing that can make that happen is an insurance product.
Insurance is awesome. It can solve the world’s problems. It always has.
Jason Cass is a thought leader, speaker, agency owner and champion for the independent insurance industry. He is the founder of Agency Intelligence (AI), a place where insurance agents and agency owners can connect, share knowledge and work together to improve their agencies and move the industry forward.
Jason hosts two major insurance podcast series, Agent’s Influence and Agency Intelligence where he talks with those that influence the insurance industry and connects with independent insurance agents all over the country. He is also the author of the Amazon Bestselling book, Customer Service is Just Foreplay, and is working on his second book titled, The Great Separator.