The importance of insurance is self-evident. It provides financial protection against unexpected events or risks.
However, despite its significant benefits, many people are reluctant to purchase insurance. Why are more and more people choosing not to buy insurance? What frustrations and considerations lie behind this?
Lack of insurance awareness:
① Many people have a low understanding of insurance and are unclear about its specific functions and significance, fearing scams. Some agents or brokers exaggerate insurance claims to profit, concealing information and forcing unsuitable customers to purchase, ultimately leading to claims denial.
② Lack of risk awareness leads people to believe they will not encounter unfortunate events and therefore not proactively purchasing insurance products.
Another consequence of underestimating risk is that individuals and families may face financial ruin when misfortune strikes. Without insurance, medical expenses, property damage, or the loss of family members can lead to significant financial stress and even bankruptcy.
Thus, purchasing insurance is a reasonable risk assessment and preventative measure. By paying premiums, individuals are effectively investing in their future security and financial stability. Insurance provides a mechanism for individuals and families to receive financial assistance and protection against unpredictable risks.
Insurance Company Reputation Issues:
① Some people have developed distrust of the industry as a whole due to past incidents of insurance companies failing to meet their compensation obligations.
② This distrust leads them to choose alternative investment or savings methods rather than purchasing insurance products.
An insurance company's reputation and trustworthiness are influenced by its service quality, claims processing efficiency, and transparency. If an insurance company displays delays, denials, or unfair practices in handling claims, this can severely undermine consumer trust. Furthermore, an insurance company's marketing strategies and sales practices can also impact consumer trust. For example, overly aggressive or misleading sales tactics can leave consumers feeling deceived.
Lack of trust can also stem from consumer concerns about the financial stability of an insurance company. Insurance contracts often involve long-term commitments, and consumers need to trust that the insurance company will meet its future claims obligations. If an insurance company's financial situation is unstable or faces bankruptcy risks, consumers may hesitate to purchase insurance.
High Insurance Costs:
① For individuals with limited incomes or tight budgets, insurance costs can be perceived as a significant burden.
② When weighing immediate needs against future risk protection, they may prioritize meeting their current needs.
Financial cost is the primary factor for many people when considering insurance. Insurance costs, or premiums, are the direct cost of purchasing protection. For individuals with limited income or tight budgets, premiums may be perceived as a significant burden. They may prefer to use their funds to meet immediate needs, such as food, housing, education, or repaying debt, rather than paying for protection against seemingly distant risks.
Complex insurance products:
① The insurance market offers a wide variety of products, but product descriptions and terms are often complex and difficult to understand.
② This creates significant difficulties for consumers purchasing insurance, leading to hesitation or even a foregoing purchase.
Lack of professional knowledge:
① Insurance expertise is complex and requires significant learning and mastery.
② Many people lack professional insurance training and lack sufficient knowledge of insurance, which can lead to blindly following trends or misunderstandings when purchasing insurance products. The insurance market is a complex and ever-changing landscape, encompassing a wide variety of insurance products, such as health insurance, life insurance, and property and casualty insurance. Each insurance product has specific terms, coverage, and fee structures. A lack of understanding of these details can prevent consumers from making informed purchasing decisions.
Improper Insurance Marketing Practices:
① Some insurance companies use overly aggressive or misleading marketing tactics, which can turn off consumers.
② Such inappropriate marketing tactics can also foster consumer doubt and distrust of insurance products.
Underestimation of Risk:
① Some people may underestimate future risks because they haven't experienced major misfortunes in the past.
② This psychological phenomenon can lead them to believe they don't need insurance to protect against potential risks.