Man must survive. In the wake of getting adequate money for one’s needs, little attention has been paid to our ubiquitous service: Insurance. Let me now demystify this mystery and show you good avenues to make some bucks without being employed by an insurance firm. Insurance is a paid promise of compensation for specific potential future losses. Let’s now look at how to make it happen:
Did you know that the chunk of insurance premium received by underwriters go into the pockets of agents and brokers? Yes. They do find their way there. In the process of arranging and securing the insurance contract, insurers rely invariably on intermediaries to get the contract through. These middle men are paid good fees for their work. The rate of commission earned on a transaction can be as high as 20% on the premium comparative to what most enviable investment bankers earn; 2%. In life assurances for example, commission payments can sometimes run for a long time till the policy matures or elapses. What prevents you from thinking about this again! Needless to say these intermediaries are often times trained and worth their salt in the insurance business.
Insurance risk surveyors carry out surveys of buildings, machinery, transport and other sites or items that need to be insured or repaired. Most insurers rely on the services of a surveyor for a valuation of the loss item. Those interested in surveying can equip themselves and provide this service to insurers of which they would be compensated for.
Lawyers represent claimants in defense of their claim; mostly motor accidents injury claim. Their efforts to present a case are rewarded in the form of the legal fees. The payment rate is usually about 10-15% of the claim amount.
Insurers operate to pay valid claim. Period! The motor portfolio occupies a greater percentage of the account of general insurers. Thus numerous motor claims subsequently. Operating an organized fitting shop serves the interest of workshop operator to partner with an insurance firm and make some decent bucks. A good workshop benefits by repairing claimants damaged vehicles with speed, quality and cost effective services without fuss.
One of the most prolific shares to own is that of insurance. Trust me you can obtain a good return on your investment. Whether it is an insurance firm or brokerage, it makes business sense to own some part of this profitable industry. If you doubt this assertion, refer to Warren Buffet for some advice.
Michael Adomako, ACII.