Two things certain about this life are thus. You have heard the story before. The two things you can be certain about in this life are death and taxes. And would you believe that in some areas, it is expected of you to pay death taxes too. Insurance business, however, is so unpredictable. Many consumers, even small to medium-sized business handlers have chosen to forego this essential piece of business.
Two main reasons have informed this neglect. Uncertain or unexpected events, anything from as small as losing a piece of jewelry at the mall to something as calamitous as a factory burning down to the ground, have ‘only’ happened once in a blue moon for many consumers. And while they waited for these ‘unexpected’ events to occur (and that never happened), their insurance premiums kept on going up and up and up.
Perhaps then, that can be ticked off as a third certainty. Insurance premiums continue to increase every year, and it is extremely rare that consumers are rewarded for the reverse. It was meant to be a principle of insurance to reward those responsible policy holders who looked after their risks and claimed for loss and damage as little as possible. But all for naught, as it has turned out for many, commercial and domestic.
Captive insurance industry business has, however, bucked the trend for those commercial and domestic insureds who have elected to buy into this alternative practice. Consumers are no longer beholden to conventional short term insurers. Here, consumers buy into a fund that gets utilized for them. And when they suffer a loss, they will be compensated accordingly, and fairly. They will not be penalized for other insureds’ losses and premiums are charged against their own records only.