Did you know that the average American household pays between 1500 and 2700 dollars annually on homeowners and automobile insurance? For people over the age of 25, the cost of their combined premiums can drop below 1000 per year. If you do not find that number staggering, you are not alone. Considering the thousands of dollars in liability and homeowners coverage insureds get for the of money they pay, insurance is actually pretty inexpensive. One might even go as far as to say that it is really the insurance companies that are taking the risk by insuring us.
This is not to saying paying 1500 or 2000 dollars per year on insurance is not a major expense, but honestly, a lot of people pay more than that for cable, gasoline, and even their cell phone bills. Although people constantly complain about how much they pay for their insurance, most of them really have little to complain about. This is because statistics show that a quarter of all Americans, including those who do not drive, will be involved in an auto accident at some point in their lives.
The point is insurance companies risk losing a lot by insuring individuals when accidents are certain to occur. On the other hand, we spend very little in exchange for security that could amount to thousands of dollars. So, when you really think about it, insurance companies are the ones who need insurance risk management if they hope to maximize their profit. After all, insurance is a business, and insurance risk management companies offer their clients expert advice on risk and insurance strategies that are supported by insurance research.
When it comes to risk insurance services, even the biggest, most well known insurance companies rely on the best insurance risk management companies available. Just like their insureds demand the best coverage from their insurance companies, a risk insurance company can provide their clients with similar assurance. The bottom line is insurance companies are just like their clients, they want to cut their costs by minimizing their risks.