Don’t disregard the unconventional
Insurance has become a necessary purchase in modern society. And while we tend to insure regular items there is a question as to whether there is space in the market for the public to take out insurance for items/events that are perhaps unconventional.
Celebrities have been doing this for years. David Beckham insured his legs against injury and Tom Jones insured his chest hair for a hefty sum of $7 million. But while we are not expecting regular members of the public to go to these extremes, there is some room for the unconventional to make an appearance on everyday policies. This was a topic highlighted by Derek Vice, Senior Manager of Financial Services at KPMG, at the recent launch of the KPMG Insurance Survey.
The love UMA
In some cases, love does not last in modern society; people fall out of love as quickly as they fall in love. So is there a possibility to insure yourself against losing the love of your life? Vice pointed out that there are already insurance policies that cover weddings, but has one ever considered covering the cost of trauma therapy caused by a runaway bride or groom? Further, there is more than one instance of a wedding dress catching fire at the wedding or before the wedding.
The next step is starting a family. And this can come with a lot of expectations for parents. Vice paints the following scenario: a family has a little boy, and they are ecstatic about it. So naturally the family wants to have another child. But what if two children turns into three, four or five children? “Insurance against such surprises is a logical next step in the world of insurance and is already being sold by Lloyds of London.”
He added that for six years, Britishinsurance.com has been insuring a group of woman against the Immaculate Conception. “These responsible ladies were concerned that they would not be able to provide for their new families should such a miracle occur. Because of these concerns, they took out insurance. This is something the Love UMA would have to consider in the twins, triplets and quadruplets insurance policy wording,” said Vice.
The supernatural
Whether you believe in it or not, insurance against the supernatural is real and is a common feature in the British market. Vice pointed out the British have quite a fancy for insurance against the supernatural with insurance policies taken out against the Loch Ness Monster and a number of Haunted Houses.
But this is not limited to the UK or the US. “A cursory online search shows that witchcraft is still a hotly debated and emotional issue for many South Africans. Life insurers already cover being unable to work for various reasons, as well as the required support and intervention. Therefore, it seems plausible that there would be a market for insurance protection related to loss of income or inability to work related to the supernatural.
Cracked claims
What are some of the more unconventional claims that have taken place? Probably one of the most famous cases was the one by a cigar owner who lost his cigars due to fire damage. The client submitted the claims and insisted that the insurer honor the claim because the cigars were lost in a series of small fires as opposed to a large fire. The insurer rejected the claim but was compelled by the judge to honor it as he could not fault the insureds logic. After settling the claim, the insurer charged the insured with arson. The insurer won the case and the insured received a two year prison sentence and a $24 000 fine.
There is also the urban legend that coconut’s falling from trees cause more deaths a year than sharks. Because of this, you would not be surprised to discover that you can take out travel insurance that includes death by coconut.
Editor’s Thoughts:
This does leave insurers with some food for thought. Perhaps offering unconventional insurance is not as ludicrous as it sounds. After the bombshell of the Ashley Madison leaked information, and the the increased risk that the cyber world poses, perhaps taking out insurance against unconventional insurable risks is not a bad idea. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected].
