It's easy to forget, but once upon a time insurance was designed to provide major value to consumers, without the hassle experienced in today's average insurance transaction.
In ancient times, various forms of basic insurance occurred to protect sea voyages that lost or were forced to throw cargo overboard. Then, insurance was a compact between two or more parties for mutual gain.
Back then, insurance was used as a tool to create greater wealth and freedom, providing the protection needed to launch great endeavors or recover from catastrophic losses. Insurance provided a second (or third, or fourth) chance to people, and in the process changed entire economies, making possible many ventures that enriched the world.
My, how far we've fallen.
Make no mistake: insurance still plays a critical role in society. But somewhere in our long history, we've lost our way.
What used to be an agreement for mutual gain, sealed with a contract and a handshake, is now bogged down in legal documents, exceptions and jargon that only one party (insurers) actually understands. It's never been harder to buy with confidence and a clear view of exactly what your premiums are paying for. And far from enriching society, insurance is enriching a few--because everyone needs insurance, but there are relatively few parties from which to buy it.
It was easier in the past, to be sure--contracts were basic, trust was mutual and needs were simpler. But insurers were also consumer champions back then, truly interested and aligned with the good of customers. However, by looking at the differences between then and now, we can start to see where we've gone wrong.
Regaining the Human Element of Insurance
One common thread throughout insurance history--before the modern era--is that everyone was aligned on the dangers involved. Consider: in ancient times, a sea voyage was an undertaking where all parties knew, almost certainly, that not everyone or everything would survive. That's a truly jaw-dropping thought: that every single trade journey over water was our equivalent of a manned mission to Mars. The stakes were a little higher than getting in a fender-bender on the way to work.
The same goes for loss of any type. There's no denying that loss of any sort, even in modern times, is tragic to bear. No one should have to face the thought of losing their home, business or a critical asset. These losses have very real impacts on millions of families today. But in the past, a loss of this sort could mean complete bankruptcy or even death, since little formal infrastructure existed to support people who lost everything.
This is one of the reasons why you see forms of insurance that were started in ancient times by fraternal, professional or religious organizations: they took care of their own because no one else could or would.
Today, we've lost sight of the fact that a real human being sits on either end of the transaction. And while we're comparatively well-off compared to the ancients, real human concerns lie behind every insurance interaction, no matter how trivial or severe the risk.
What does this mean? It means that insurers view consumers as numbers in a database. It means that consumers view insurers as faceless entities behind bland mascots. Even if you can still call up your local agent, they may not be truly aligned with your best interests, depending on the insurers they represent.
Make no mistake: technology is a critical ingredient in creating a truly customer-centric business model. But technology's highest value is making insurance easier, better and more affordable for a living, breathing person.
We've lost the human element in insurance. And if there's one thing the history of insurance can teach us, we need to get it back. Only then will insurers truly be consumer champions again--when they start seeing consumers as people, with real hopes, dreams, fears and needs. To start doing that, they might want to pick up a history book.
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.