General insurance Why insurance policy is not common in the third world countries.

btaliat

VIP Contributor
In my country there are few and they are also not doing any promotion on advert and even social media platforms and what surprises me most is that how do they get clients after they did not do any advert , to increase the patronage of the insurance company , I hope they start looking towards this
The actual fact is that most patronizers of insurance companies are those big business men who know the risk that are involved in their business and they don't want to bear all the losses in case the loss occurs. It will be foolish of a successful transporter not to engage in insurance policy.
 

sincerem

VIP Contributor
Yeah probably ignorance too , because despite the high rate of proverty there are still some people that are rich and yet to hear about the meaning of insurance ,they actually don't just have an idea about it ,if not since they have the purchasing power they would have gotten an insurance policy too
I understand your points dear, some people are still leaving in the dark, where civilization isn't much like ours. They are simply unaware about insurance and it's benefits. And no one have spread the words about insurance benefits, and how to invest into insurance. Who knows, maybe they could've get in too.
 

Augusta

VIP Contributor
Insurance is one of the financial words that is mostky used. Though it is most used, most people don't involve in insurance especially people of the third world countries.


There are many reasons why people of the third world don't take insurance policy serious as it should be taken. Below are the reasons.


Misconception: most people do think insurance is for the rich people. Research has revealed that most average people don't really like engaging themselves in insurance because they see it as rich men policy.


Non availability of insurance companies: I have gone so many threads on insurance and I noticed that most insurance companies listed are from the advanced countries. This has made it impossible for people to partake much in insurance policy.

High premium : the premium expected to be paid to these insurance companies are too high most time. They charge exorbitant fee which makes some people to even conclude it is truly for the rich.
You are right on your points especially on the high premium which might be too much money for a lot of people considering the fact that people in these countries don't esrn much so they might find out difficult to part with such amount of money monthly. But insurance is good at least with legit companies
 
D

Deleted member 28127

Guest
In order to buy insurance policy, you will need a regular income. Your income must also be greater than your expenses. Let say, you earn $100 and you need $100 to pay your bills, how can you pay $20 as premium for an insurance company? Buying insurance is just like saving, which can be done only when you earn better.
Some bills can be postponed for example some times electricity and water is divided into 3 bills so you pay one bill of three and pay next two bills for next upcoming two weeks so you pay in three times for three weeks then you will use 20 $ for insurance company so what you are saying is theory but practice is something other.
 

btaliat

VIP Contributor
I honestly do agree with you on this and to add to this I think that illiteracy is one of the main reason that discourage people and also ignorance because most people do fail to want to know about the importance of it, instead they see the negative side of it
I need to agree with you on that but most time, the people don't intentionally invest in insurance because they don't see it as something of importance to them. Personally, I don't like insurance policy. I do see it as a game between the instance company and the insured person. There are many like me for sure.
 

Mandy96

Valued Contributor
I honestly do agree with you on this and to add to this I think that illiteracy is one of the main reason that discourage people and also ignorance because most people do fail to want to know about the importance of it, instead they see the negative side of it
 

Wisdom01

Valued Contributor
Some third world countries are simply on a rapid development too, not many are living in the dark. The world as a whole is civilized, insurance companies have spread their wings all over. You'll get to see insurance in almost the countries in the world. Just that, many aren't still interested in it, and again, poverty is a reason why some interested ones aren't into it.
Yeah probably ignorance too , because despite the high rate of proverty there are still some people that are rich and yet to hear about the meaning of insurance ,they actually don't just have an idea about it ,if not since they have the purchasing power they would have gotten an insurance policy too
 

sincerem

VIP Contributor
Some third world countries are simply on a rapid development too, not many are living in the dark. The world as a whole is civilized, insurance companies have spread their wings all over. You'll get to see insurance in almost the countries in the world. Just that, many aren't still interested in it, and again, poverty is a reason why some interested ones aren't into it.
 

Jasmine

VIP Contributor
In order to buy insurance policy, you will need a regular income. Your income must also be greater than your expenses. Let say, you earn $100 and you need $100 to pay your bills, how can you pay $20 as premium for an insurance company? Buying insurance is just like saving, which can be done only when you earn better.
 

Mika

VIP Contributor
Thanks for the correction. However you may not get my point hence your conclusion. I am not saying the premium doesn't differ based on the type of insurance one is willing to settle for. I am only saying the premium they charge in general regardless the type of insurance is high. And I am speaking for my country alone. Thanks all the same.
It is good that you clarified on this point that you are speaking of your country only. Based on my understanding of insurance companies and the policies they sell here in my home country, I do not think they have set high premiums. The insured amount is divided by the number of years for your term, the company adds certain charges and then the premium is set.
 

Good luck

Verified member
Is there any country without insurance policy?? I don't think so because virtually all countries deal in insurance to secure the future.Insurance is their major backup or backbone to say Incase of any emergency or when something come up unplanned for came up.one will have something to sort out the situation.
 

btaliat

VIP Contributor
Insurance is one of the financial words that is mostky used. Though it is most used, most people don't involve in insurance especially people of the third world countries.


There are many reasons why people of the third world don't take insurance policy serious as it should be taken. Below are the reasons.


Misconception: most people do think insurance is for the rich people. Research has revealed that most average people don't really like engaging themselves in insurance because they see it as rich men policy.


Non availability of insurance companies: I have gone so many threads on insurance and I noticed that most insurance companies listed are from the advanced countries. This has made it impossible for people to partake much in insurance policy.

High premium : the premium expected to be paid to these insurance companies are too high most time. They charge exorbitant fee which makes some people to even conclude it is truly for the rich.
 

btaliat

VIP Contributor
This is incorrect for all countries of 3rd world. Different countries have different policies, all insurance companies go with the regulations. Mostly these insurance regulations are checked by the international community, and different countries keep updating policy as per international standards, companies also have a body named International Association of Insurance Supervisors (IAIS).
Thanks for the clarification. I don't know the country you stay but I am talking as per my own country. I may use the world, third world wrongly to generalize instead of focusing on my own country because insurance is not that popular in my country based on some factors that I have highlighted up there.
 

Yugocean

Valued Contributor
This is incorrect for all countries of 3rd world. Different countries have different policies, all insurance companies go with the regulations. Mostly these insurance regulations are checked by the international community, and different countries keep updating policy as per international standards, companies also have a body named International Association of Insurance Supervisors (IAIS).
 

Wisdom01

Valued Contributor
You are right but I don't think it his problem is from the insurance companies and not the people. It is hightime those insurance companies stepped up their games and makes sure that people are fully aware of their operations. In fact, personally have I seen any insurance company around me neither I have seen their workers advertising it.
In my country there are few and they are also not doing any promotion on advert and even social media platforms and what surprises me most is that how do they get clients after they did not do any advert , to increase the patronage of the insurance company , I hope they start looking towards this
 

btaliat

VIP Contributor
Well another factor is the enlightenment about insurance and the low educational level about insurance ,since many are not really aware about insurance and how it's been done ,so they don't really put too much interest in it since they don't know anything about ,I see this as contributing factors that impact
You are right but I don't think it his problem is from the insurance companies and not the people. It is hightime those insurance companies stepped up their games and makes sure that people are fully aware of their operations. In fact, personally have I seen any insurance company around me neither I have seen their workers advertising it.
 

Wisdom01

Valued Contributor
Well another factor is the enlightenment about insurance and the low educational level about insurance ,since many are not really aware about insurance and how it's been done ,so they don't really put too much interest in it since they don't know anything about ,I see this as contributing factors that impact
 

btaliat

VIP Contributor
I think you also have a wrong notion about insurance companies. One of the reasons you have given says "high premium." You say insurance companies charge exorbitant fees. This is not true. You need to understand the basic rule. Insurance companies' premium depends on the insured amount. You will pay less premium if your insured amount is lesser.
Thanks for the correction. However you may not get my point hence your conclusion. I am not saying the premium doesn't differ based on the type of insurance one is willing to settle for. I am only saying the premium they charge in general regardless the type of insurance is high. And I am speaking for my country alone. Thanks all the same.
 

Mika

VIP Contributor
I think you also have a wrong notion about insurance companies. One of the reasons you have given says "high premium." You say insurance companies charge exorbitant fees. This is not true. You need to understand the basic rule. Insurance companies' premium depends on the insured amount. You will pay less premium if your insured amount is lesser.
 

btaliat

VIP Contributor
You have highlighted the subject clearly. Insurance is often viewed as a product of the sophisticated, capitalistic system of the rich. People who are outside of this group are less likely to value insurance protection. They are not at all keen on purchasing insurance policy because they find it too expensive.
And to be frank, are there insurance really make their premiums easily affordable to the people that are not that super rich. Most time they intentionally increase their premium because they know that they are not that making many customers. I think it is high time they stepped up in creating awareness for what they do.
 
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