We usually deal with injury-related topics, which are no laughing matter. So let’s take a break, and have a look at Rick Mercer’s recent riff sending up insurance brokers.
Actually, we should say a kind word for insurance brokers. In the interests of a good skit, Rick has blamed brokers for the one-way flow of cash from consumer to insurer which often seems to be the reality of the insurance transaction.
It’s not the insurance brokers who keep the cash, it’s the insurance companies, although the brokers do take a commission. Ideally, they earn that commission by giving advice to the consumer and shopping the market for the best deal. It is the insurance company which keeps the cash – or at least a lot of it. They invest it and make money that way, and yes, a good deal of it gets paid out in claims, but not all of it. And that’s the way it has to work, because after all, insurers are in business to make a profit.
But it often seems like the flow of money is one way only, and therein lies the basis for a good laugh.