Business Insurance

In recent decades, well-intentioned but poorly informed people have labeled what they called "the high cost of industrial insurance premium once a week." Any hasty than the ordinary cost of an insurance or low cost home owners insurance, of course, to the detriment of industry.

Unable to escape higher costs in the nature of the business. Three factors determine the cost of living, both ordinary andindustrial mortality, expenses and interest on investments of the company.

Of these, the first two served to make the cost more than ordinary industrial insurance. Why was largely sold to the families of men working, the insurance industry was needed for the higher mortality rate prevalent among this group. Despite the marked improvement in subsequent years, the mortality rate of insured industrial still show a surplus of close to 20%comparison with the holders of a common standard.

The second element, operating costs, was higher in the case of the insurance industry, not only for small units in which these policies were issued, but also because he had received to cover the cost of additional services that the insured industry.

The awards were received in the homes of a week, and the agent who often have more than once to the contractor and to find funds to call home. Histime to be available to people on direct debits, and the policy was saved from the cost and effort of having to pay at the headquarters of the company. The services of an agent was to be paid, and were worth what they cost. No wonder that the operating costs of the insurance premium was higher than the normal weekly.

However, progress has been steadily reducing the insurance of the difference between the cost of ordinary life and industry, and thisreduction was largely due to certain plans and a conscious effort. Mortality rates continue to drop policyholders for virtually the entire economic life. At younger ages, they finally reached about one-fifth the previous level.

The company offers a wide range of charitable activities, including comprehensive care services, no doubt reflects positively on the lives of the insured industry. Increasingly, their lives came in line withthe general population. There was a significant difference, however, in favor of the insured policy.

Better management also reduced the expense ratio of the company. The use of highly qualified staff, their greater stability, greater persistence of the policy, the best control of the details of the company, the new storage devices of the system, the expansion of insurance without medical exam-all factors that contribute to reducing 's expense ratio, althoughthe services were very wide.

In fact, the share of the premium paid to industrial costs at that time was only about half of what it was about 50 years ago, and is less than that required by most companies simply do their ordinary business.

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