Insurance Industry

The necessity for insurance is a fact of modern life. You cannot drive a car without having the necessary insurance (not legally at least), you cannot get a mortgage without having the necessary buildings insurance for your house. The legal need for insurance ensures a captive market of people who all need insurance.

There are many different types of insurance. Everything can be insured from your home, life, job and holiday. Even your pets can now be insured against any illness they may suffer and large veterinary bills that they may run up.
The value of some insurance policies has been called into question. Insurance sold on mortgages and loan agreements in particular have been called into question. This is because they are expensive and the terms and conditions under which they pay out are usually quite strict.

The market for insurance has been revolutionized by the internet. For the first time many different insurance policies could be compared against each other at the click of a switch. This has resulted in increased competition between the major insurance providers and a reduction in their profit margins.

Even with increased competition and reduced profit margins in the insurance market it remains in good health. The legal necessity for insurance ensures a captive market of millions of people who have to return year after year.