How to Respond to Insurance Haters

In a sunny room, a mixed group of insurance professional wonder how ignorant people can be.

Whether you’re a risk management and insurance major or an established insurance professional, you probably encounter more than a few insurance haters. You know, those who say that insurance is a rip-off, who don’t think that claims are ever paid, and who don’t think that they need insurance in general. You know none of that’s true, and it can be exhausting trying to explain how insurance works, let alone trying to defend it.

So, we compiled some of our favorite responses to the accusation that insurance is worthless, along with some explanation of what the responses mean. Be sure to use them next time you encounter an insurance hater.


Comment: “Why do we need insurance?”

Response: “Without insurance, nothing would happen.”

Explanation: Without insurance, it would be far too expensive to do a lot of the things we take for granted. Whether driving a car, holding concerts or opening a restaurant, things that we normally do could financially ruin our lives if we don't have the financial protection that insurance provides. Sure, you could afford a $200 fender bender, but few people could afford to buy a whole new car if they totaled their own, let alone pay for someone else’s damage. Insurance makes sure you can recover from rare but incredibly expensive events.


Comment: “Insurance is a waste of money.”

Response: “Insurance actually encourages people to innovate.”

Explanation: Some people think that insurance gets in the way of things. It’s something you need to have before you can do what you want, whether it’s hosting a fireworks show or filming a movie. The truth is quite the opposite — if people didn’t have the financial protection that insurance offers, fewer people would take the risk of trying something new.


Comment:“Insurance is so boring.”

Response: “Insurance touches everything you love.”

Explanation: Insurance is involved in almost everything in some way, including the things that interest you. If you love music, you could be involved in insuring concerts. If you love sports, you could help to insure professional teams. If you love helping the less fortunate, you can be involved with insurance by making sure claims are paid when disasters hit. Even if you love space, you could be part of the team that makes sure space missions properly manage risk. Whatever you’re interested in, it is probably impacted by insurance in some way.


Comment: “Insurance is just greedy.”

Response: “Insurance is one of humanity’s most altruistic inventions.”

Explanation: People evolved to look out for themselves, but there is also a strong social component in humanity. The idea that people would work together to pool their money and to make sure that anyone in that group is protected from catastrophe is a dramatic example of people’s willingness to help one another. Insurance should be looked at as a positive development because people have worked together to implement a system that helps each other.