November 28, 2022

Overview.

6 Reasons why insurance services are not popular.

Insurance services have not been popular in the mindsets of the public, yet some people have the zeal to use these insurance services and those are the sole reasons we want to look into, endeavour to read this specific article till the end to learn more.

 

These are the reasons we want to dig dipper into.

It is for this reasons why some insurance companies have collapsed or even nearly collapsed because one insurance services are not popular that means there are few people obtaining insurance services which implies that insurance companies have barely no customers.

Yet most of the insurance companies are businesses formed to make profits and without customers, there are no profits which makes them fall off business!!

 

What do insurance services consist of?

 

Insurance services are intangible services which involves the insured (policy holder), insurer ( in this case insurance companies), insurance policies, premiums, assets insured, risks insured against as well explained in the terms used in insurance.

The insured and insurer settle down to sign a formal agreement called insurance policy which holds terms and conditions to be used for win win situation to happen in insurance.

 

The responsible governments, stakeholders and insurance companies too need to popularize insurance services in the minds of the public so as to entirely benefit from insurance services.

Some businesses have too collapsed just because of occurrence of some risks which could have been insured against just because business owners are not aware of the existence of insurance services.

 

These are the 6 sole reasons as to why insurance services have not widely been used by the public.

 

1. Value of assets.

Many people most especially here in Africa lack valuable assets that require to be insured. This makes them not have so much dyneed for insurance services hence making insurance services not popular.

Mostly insurance needs high valuable assets which Incase of any losses, they may have a big impact on the asset value insured and then the insurance company can come in to make compensation.

 

2. Obtaining insurance policy and compensation has lengthy procedure and it is not easy.

This makes many people shy away from obtaining insurance services which makes insurance services not popular. One has to fill in a lot of documents just so as to obtain an insurance policy.

The whole situation worsens when it comes to getting compensation for losses arising from the insured risks which sometimes isn’t a success on the side of the claimants as some insurance companies also tend to dodge compensation individuals. This has left a bad reputation about insurance services in the minds of the people making them not feel insurance as a valuable service in their lives.

 

3. Ignorance of the public about insurance services.

Insurance companies have not much gotten into sensitizing the public about the value of insurance services in their day to day living leaving them totally unaware about the sole need for insurance which makes insurance services not popular.

 

4. Corruption level.

The high levels of corruption exhibited by some insurance companies’ employees inform of misappropriation of premiums, charging high unnecessary fees during compensation claims assertainly makes many people fear to loose their money in the name of paying insurance premiums

This has then made insurance services not popular in the minds of the people.

 

5. Insurance has been mistaken as gambling by some individuals since compensation can only be made according to the terms and conditions stated on the insurance policy hence making insurance services not popular in the minds of the people.

 

6. Invisibility of the insurance services.

insurance services are duly invisible and only realised when the risk insured against or loss occurs which makes insurance services not popular in the mindsets of people.

 

Recommendation.

We highly recommend everyone who has gotten chance to read this article to tell a friend tell a friend about the importance of insurance services so as we can popularize the insurance services allover the globe. It is necessary insurance comes with lots of advantages attached to it.

 

Conclusion.

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We highly appreciate your efforts reading through this edition of our website content.

Hopefully you are now able to discover the reasons why insurance services are not popular, it’s all our duty to popularize about insurance.

 

Thanks.

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