Ever Expanding Insurance Industries

There are risks in every facet of life. People fear death, accidents and almost any other change. But the deaths and accidents, besides the obvious losses, also bears a financial crisis to the family and dependents which is just the added grief over the event. Relatives don’t only have to bear the grief of loss of affection they also have to face the financial instability subsequent to such events. The insurance have come into market as a financial product that helps you cope with such financial crisis. Insurance doesn’t only help in case of loss of your close relations but it also helps you in your business by securing you to some extent from any financial crisis that you might face due to some unseen future happenstances.

Insurance have always been an auxiliary industry for any other industries of commerce. Since the evolution of insurance as a financial product in market, it has provided relief to too many aggrieved families as well as helped establish many big businesses in its initial stage by giving a security against the potential harms and crises. But not unlike many other market changes, insurance also could not free itself from the shadow of crime that seems to be ever increasing its shape along with the expansion of insurance industry.

The cases of burning property and buildings to benefit from insurance claims are always well rumored. Homicides are also known to emerge due to the attractive benefits of insurance policies. The greatest among the rumors must be the one that claims the terrorist attack of 9/11 to be inside job done by the owners of the building to benefit from the insurance claim on the building. Silverstein, the then owner got $4.55 billion from the insurers after all. But even though one need to know that insurance companies never pay anybody more than the actual loss incurred. So, whatever was paid to Silverstein should have to be less than or equal to the actual loss. So the theory of the event being an inside job is just that, a theory.

But even so one cannot deny that in many cases owners have known to overvalue and then insure their property and later on demolish the property in cover of some accidents or otherwise, so that they could get a handsome reward. And many rumors claim that there have been such cases. So, this makes us think that may be insurance companies are becoming poorer by bearing the burden of such fake losses. But no. Only AXA Group engaging in insurance business reported a total revenue of € 99 billion just for fiscal year. Another company named Zurich Insurance Group reported a total of $ 60.568 billion also just in 2015. There also exist many other giant companies in the industry that have accumulated so much wealth that the remaining industries are almost financially handicapped. You see, despite any frauds and conspiracies the insurance industries are going on expanding undisturbed. They collect insurance premiums from so many customers that they need not bother over few casualties whose burden they might have to bear. Only AXA Group as mentioned above has over 102 million customers in 56 countries with the employees’ count of only 157,000.