What is required by law, has conveniently conditional claims nested in its policies, cushy deductibles, and high monthly premiums? Insurance.

As soon as a claim is filed, an investigation ensues to verify that the claim is in fact a valid one. The burden of proof lies with the insured, and the insurance company is innocent from responsibility until proven otherwise. If lucky, and the insurance company has not found a condition that excuses a lack of coverage, the insurance company shifts gears to mitigate loss from a processed claim. Instead of full settlement, a portion is attributed due to “x, y, z prevailing conditions”, as well as a corresponding premium increase to the insured to recoup the costs from the claim.

We need new ways to save people from financial ruin in the case of “accidents” and “acts of god”. Insurance should assure communities, not rob and guilt them.

 

Litigation

After a recent ski trip with a European family member, we wondered why the lift tickets were 10x the price of those in Europe for an equivalent day on the slopes. We discovered from the teller that the greatest cost for ski resorts is now liability insurance and the legal costs involved with staving off incoming lawsuits due to “skier-skier collisions” and “recreational injuries”.

In a litigious society with specialists driving their domains to repay their student debts (law, medicine), the climate has become hostile and suspicious. We need a stable form of democratized insurance that can withstand the inclination to degrade into privatized policies with astronomical premiums and sickeningly bare coverages (see Obamacare).

Insurance is a ripe area for innovation, and I strongly encourage creative efforts in this painfully broken industry to help improve society.