Did you know that insurance can cover natural disasters, terrorism, pandemics and liability caused by creepy crawlies? Insuring has been around for nearly 5,000 years! Additionally, today there are over 300 types of policies available to individuals and businesses alike – the industry itself being vast and complex, yet dynamic as new players emerge while some fade away; given its reputation of being filled with staid old school companies it may surprise some to discover this much there is to know about insurance. Here are ten interesting facts that you might not know about insurance – these might surprise some!
You Might Not Know About Insurance
1) Insurance Has Been Around For 5,000 Years
Insurance has its roots in ancient China where farmers would form groups to pool funds in order to cover losses caused by natural disasters. Later, in 16th-century Britain, the Marine Society was created in order to pool funds and provide financial aid for sailors injured or lost at sea. Since its conception thousands of years ago, insurance has always been about risk management and providing peace of mind to individuals and businesses alike.
2) Terrorism Insurance Is One Of The Fastest Growing Types Of Insurance Today
One form of insurance designed specifically to cover losses caused by terrorism is general commercial terrorism insurance, purchased by businesses; another type is an extension of commercial general liability coverage purchased by both individuals and companies. Commercial general liability extends the coverage of commercial property and casualty insurance to include acts of terrorism. Terrorism premiums have increased exponentially since 9/11 while other forms of insurance premiums have declined; this has led to an explosion of growth for this type of coverage; in 2018, global terrorism insurance market premiums reached $45 billion, more than tripling its total from $15 billion written back in 2001.
3) There Are Over 300 Different Types Of Insurance Available Today
The insurance industry is an intricate web of companies and policies. Automobile, homeowners and health policies are just some of the more commonly purchased coverages; each is designed to address different kinds of risks. Homeowners insurance provides coverage against natural disasters, terrorism and fire risks; auto insurance provides coverage against bodily injury and property damage liability claims; in addition to standard policies there are also specialized policies designed to cover unusual risks such as animal liability insurance which covers damages caused by vicious animals owned by policy holders; medical malpractice coverage protects healthcare professionals in case they’re successfully sued by patients.
4) You Don’t Need To Own A Car To Have Auto Insurance
Auto insurance may seem like something required only of those with cars, but this isn’t actually true. A significant portion of people don’t own cars but still carry auto insurance policies – nearly 20% do so but don’t drive! Non-operators make up a large percentage of the auto insurance market and are known as non-operators. Auto insurance was designed primarily to protect other people from the financial repercussions of your actions; moreover, it serves to shield drivers themselves against poor driving from other parties if someone hits your car and causes damages of at least $10,000; typically this coverage would pay for repairs to your own car as well.
5) All Licensed Drivers Are Required To Have Auto Liability Insurance
Every state in the US has different insurance laws, but all require all licensed drivers to carry auto liability coverage – the minimum coverage amounts differ by state and are known as “liability requirements.” Insurance companies typically increase your policy cost as the number of miles driven increases; type of car also affects premium cost. Some states enact “no-fault” laws that mandate policy holders carry certain levels of coverage. Auto insurance companies use various factors, including your age and gender as well as type of car you drive and the distance covered annually, to calculate premiums. They factor in factors like your annual mileage driven.
6) 90% Of Identity Theft Is Committed By People You Know And Trust.
Identity theft may seem like the act of strangers on public transit or online, but in reality nearly 90% of identity theft cases are perpetrated by people you trust; including family, friends and even employees. Identity thieves use personal identifiable data gathered through hacking, theft of purses or wallets or garbage digging to commit the theft. Identity theft has a devastating impact on one’s credit score and financial future if one falls prey. Restoring that score may take years.
7) A Pandemic Is A Disease That Spreads Rapidly Across A Large Region.
Pandemics are outbreaks of infectious disease with increased severity that are difficult to contain and difficult for authorities to manage, according to the World Health Organization’s mathematical model for pandemic risk evaluation. As risk increases, so too does its likelihood; when one occurs it often has serious implications on insurance industry policies like travel or car coverage as companies try to control disease spread by cancelling coverage temporarily or entirely for certain policies like travel insurance in an effort to contain its spread.
8) Natural Disasters Can Cause Massive Destruction And Loss Of Life
Natural disasters are unpredictable events that can strike at any moment and at any place. While weather cannot always be predicted accurately, you can take measures to lessen your chances of encountering one. Steps you can take to protect yourself against natural disasters include monitoring weather forecasts, securing your home and contents, and having appropriate insurance in place. Natural disasters can be caused by many different elements, from weather patterns and climate change, to flooding. Flooding is among the most prevalent natural disasters; hurricanes and tropical storms also pose serious threats; wildfires and tornadoes also wreak havoc, with wildfires being particularly destructive over recent years.
These are just a few interesting facts about insurance. The industry is vast, complex and dynamic – constantly shifting with new players emerging while others fade away. For what may appear like an ageing sector filled with old school companies, it’s surprising just how much there is to know. To ensure you have adequate protection it’s crucial that you understand different policies available as well as the way insurance works – any queries or issues should always be communicated directly to your agent.