Economic Downturn Increases Risk


More often than not, road accidents lead to serious injury and loss, not only to property, but also life.

Economic Downturn Increases RiskSurviving family and friends do not only deal with emotional stress, but also financial distress.  Things turn up a notch higher in these difficult business conditions where people forego a lot of conveniences because of tight finances.

Just recently a massive traffic accident occurred in Louisiana that resulted in the deaths of five people.  The lone survivor of the accident, an elderly woman broke both her legs.  She lost her son, grandchildren, and daughter who all perished in the mishap.  The elderly is still confined in a hospital undergoing treatment and rehabilitation.

Incidents like these remind people how important insurance coverage is and how crucial a role it plays in contingencies.

Insurance experts advise people to assess their risk profile first to give them an idea on what kinds of insurance plans might be of good use to them and what would suit them best.  Now more than ever, the recession has made people less particular of insurance products that would best suit them.  Today’s driver seems to be more concerned on what are the cheapest plans available.

Research reveals that a mere 20% of adult drivers have insurance. What compounds the problem is that 30% percent of the total insured population have inadequate insurance.

A small percentage of people who can afford coverage these days prefer really basic almost strip down bare insurance plans. However, such types of insurance do not provide adequate protection to policyholders, and are not of much use in major events.

Two industry insiders were asked if the current economic weakness had a direct impact to their business. The two executives from Farmers denied of any financial struggles inside their company.  They added that Farmers had invested in secure government instruments beforehand and so when the recession got into full swing, the company did not panic since they had enough buffer resources to stay afloat.  Farmers is currently, and still remains as, one of the top employers in Hillsboro, Oregon employing thousands of locals.

Since people are penny-pinching because of the uninspiring economic condition and opting for cheap insurance plans, they are effectively putting themselves to greater risks when they are on the road. Nevertheless it is comforting to know that some forward looking insurance companies have made wide investments in the past that are serving them well today.  For people who are on the lookout for an insurance company today, it is reassuring to know that there are still strong insurance companies out there which are financially stable, secure and thriving even in today’s severe economic condition.