The perception of insurance companies as a “sham industry” often stems from public frustration with specific business practices. Executives wearing suits and ties project professionalism and trustworthiness, which is crucial for industries that rely on consumer confidence. However, critics argue that this polished appearance can mask issues within the industry, such as:

1. Profit Motives Over Saving Lives: Insurance companies are businesses aiming to maximize profits. Critics argue that this can lead to practices like denying claims, raising premiums, or creating overly complex policies that disadvantage customers.
2. Complexity and Lack of Transparency: Insurance policies are often written in dense, technical language. This can leave customers confused about what is covered, making it easier for companies to deny claims on technicalities.
3. Perceived Inequities: People often feel that they pay high premiums for years without needing services, only to encounter resistance when they file a legitimate claim. This creates the impression of a one-sided relationship benefiting the insurer.
4. Lobbying and Regulatory Influence: Insurance companies often have significant influence in shaping laws and regulations through lobbying. Critics claim this enables them to prioritize corporate interests over consumer protections.
5. These issues contribute to the perception of the industry as disingenuous. The industry’s image problem persists, partly due to these contradictions between its public image and real shortcomings. Many view insurance companies as similar to pay day loan companies. We are trapped in this system as the companies pay insane amounts of money lobbying our representatives.