Wednesday, June 22, 2016

Easy to scare consumers into paying big premiums for risks with low claim ratios

Many consumers, especially ladies, pay a big premium to be covered for critical illness. They are helping the insurance companies to make tens or hundred of millions in profit each year.

The following table shows the obscene profit margin made by the insurance companies offering this type of cover.

It is easy for the agents to frighten the consumers to pay a large premium because nobody likes to be struck with cancer.

The consumers should also be aware that there are also many people who are injured through traffic accidents each year, and they are not paying humongous premiums to be covered for this risk.

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