Insurance is not an investment, it is protection
Since as far as the beginning of human existence, the basic idea of ‘insurance’ – that of spreading risk – has been applied by our ancestors. In prehistoric time, our ancestors hunted animals in group to spread the risk of being the only one killed to death. Fast forward to when human start to trade, traders in the old days shipped cargo in several different groups to avoid losing the whole shipment to pirates or plundering tribes. Although obviously back then the method and term of ‘insurance’ was not yet coined, it is a historic proof that us human beings have always been prudent of risk, and that our instinct is to find ways to reduce that risks, or in other words, share it with others.
Today, insurance is considered as one important aspect to a worry-free in general, and to conduct business safely and protecting a future, whether it is one’s personal life or in business. By definition, it is basically a practice where an insurance company provides a guarantee of compensation for agreed loss, damage, illness, or death in return for payment. In fact, in some countries like USA, UK and most Europe countries, it is required by law to apply insurance in most aspects of life as it is considered as a basic need.
Although it may seem complicated, the basic principle of insurance is actually very simple. The payments (or premiums) of the many that are insured, pay for the losses of a few that has been impacted.
To illustrate, if the insurance company keeps the premiums in a large pool, the claims of the few are paid from that pool. Because there are more people contributing to the pool than there are making claims, there is always enough to pay the claims—even large single claims (like when someone is deceased, or permanently disabled as a result of an accident), or many smaller claims like those resulting from a natural disaster.
Today, the relevance of appropriate business insurance is undeniable. A company faces numerous possibilities of accidents, legal disputes, or natural disasters that are getting more common that before. Having the right broker can determine the difference between success and failure, ` loss and profit, and between protected future or starting from zero.
But how can we tell if we have applied the most proper coverage for our business? It is common to get blindsided amongst hundreds of policies with different premiums, conditions and terms. Wouldn’t all providers tell you what you want to hear? That their product is the most suitable for your business?
This is where RPA comes in, by helping you identify and understand your company’s needs, to look for the best insurance proposals that meet the requirements, manage claims, and to “translate” the insurance jargons found in most contracts to be comprehensible by you.
We have been professionally trained to choose the suitable package for our customers; so that we can help them avert redundant or less relevant claims while maintaining the appropriate premium income.
To get a better understanding and help you decide on what is the most suitable combination of service for your business, let’s take a closer look on how much does RPA, as an insurance broker, vary from direct insurance services:
Independence – RPA are in connection and usually sell for multiple insurance companies, which makes us more independent. With this reason, we can also provide more options and a broader and well-informed view of the market.
Assistance – Working with RPA means you will have a readily available and reliable source of information to help you with any necessary details from documentation completions,follow ups, to liaising with the underwriter. Brokers are also more efficient in making useful suggestions, which ultimately will save you your valuable time.
Working with an Insurance Broker means having an independent consultant to help you decide on what’s the best and suitable service from an insurance provider. With our consultants, RPA is dedicated to offer solutions tailored to your business ’ specific needs to help you control risks, reduce costs, and protect your company’s future
Disclaimer: This is not investment advice. All information on this site is intended for educational purposes only. We are not liable for any potential damages that may be incurred from this information. Always consult a risk management professional before insure.