AOM 4

AOM 4 Blog
Sarah Laskin
This chapter talked about insurance, different kinds of insurance, and the history behind insurance. Scotland was actually the first country to have insurance (well, insurance companies). The book explained that the first type of insurance was actually life insurance, and it was made for widows, as back in that time women didn’t really work, or if they did it was not nearly as much as their male spouses. So, if their husbands died suddenly, the household would have no way to make money.
The life insurance was calculated based on a variety of things to get the most profit: after all, there has to be money gained. Age, health, gender, and line of work were among things considered when first coming up with the ideas for life insurance. 
Now, there are many types of insurance, which you can get for almost anything. From floods and other natural disasters to life, virtually anything can be insured. Insurance companies make money by having the customer pay in case something happens, and it that event does happen the company is required to reimburse the customer. However, it is not usually this straightforward. 
First, insurance companies might not fully pay their part of the deal. If not legally bound, they don’t have to- so why should they? This could mean losing profit. Also, the client could be committing something called insurance fraud, which is when they claim something happened and it really didn't. For this reason, insurance companies hire lawyers and investigators for big cases to make sure the claim is real. 

Insurance is a great way to make money if you’re smart about maximizing profits while charging as little as possible. It is also a huge field to work in because each company has a different strategy of how they make their money- some rely on huge fees but pay out more, while some rely on having smaller deducibles and lower-risk clients.

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