Environmental Factors affecting insurance

Environmental Factors affecting insurance 1. NEGATIVE OR BAD RECORD: Experience has revealed that many insurance companies has failed in their duties of settling their policyholders by giving excuses on the reasons why they should not settle them. Because of this, many would be customers or prospective customers still entertain fears as to the insurance firms abilities to settle their claims when it eventually surface. 2. PREVIOUS RECORD: Past record has shown that individuals do depend on their relatives, friends and well wishers in the area of monetary assistance as to the provision of remedies to their private or business problems which makes it difficult for individuals who desires to attract financial assistance from insurance companies to be discouraged. 3. PEOPLE’S PERCEPTION: Many people perceive insurance companies as a sort of gambling and in that regard tries to avoid it as a result of their traditions and cultures which tends to make individuals to loose their interest