busysblog.com

When you buy insurance, what’s the first thing to pop into your mind? The premium, right? Well, that’s sort of right. What’s meant here is that the premium is not everything. Because believe or not, car insurance isn’t actually a product; it’s a legal arrangement; so it’s kind of a cross between a product (in the sense that it can be packaged up) and a service (in the sense that it isn’t going to collect dust on a shelf somewhere, and so these things can’t really go “on sale” per se). So that all said, what does that mean? What’s the bottom line? The bottom line is that it’s a complete zero sum situation; it’s a complete give and take. You put in what you get out, and it’s all mathematically set up this way; and it’s all lent itself really well to software and the advancements in computer technology over the past few years.