Hurricane Season Likened Unto the Second Coming

It really is true: All things testify of Christ...even insurance.

The concept of property insurance has been around for thousands of years dating back to the Babylonians and Chinese. Health and life insurance concepts began with the Greeks and Romans. I work for a Fortune 500 insurance company (#34...but who's counting). I recently completed my professional underwriting designation. I eat, breath, and bleed insurance for a good portion of my life each day. And yet, sometimes, I question the need/value of insurance. I fully understand the economic and social values of insurance. I understand its history and purpose. But life insurance for a child? Or laws mandating the purchase of insurance (not just the new health care reform...but auto as well)? Sometimes I question the moral aspects of insurance. (But I'm getting off topic.)

Underwriting departments do their best to avoid adverse selection. The premise is that those who need insurance most are the ones with the greatest demand. Because of this, insurers do their best to provide the lowest risk customers with the best premium and the highest risk customers with a higher premium. If your book deteriorates and you begin charging clean drivers, for example, with higher premiums, they'll leave. To remain solvent in that scenario, actuaries may increase premiums...causing the remaining best customers to leave. It can easily become a death spiral resulting in the worst case scenario that a company is left with the highest risk customers but is unable to charge a high enough premium for the risk. I'll tie this concept into my analogy in a little bit.

Personal insurance may seem like a burden. You may never need it. Despite the peace of mind insurance provides, it could be perceived as a financial loss if you never experience a significant claim (which most of us don't).

But if you work in a claims department, you clearly see the value of insurance each and every day. You follow through on the promise made when the policy was written. You help people recover and get back on their feet. You indemnify them (return them to the condition they were in prior to the loss).

Hurricane season officially began June 1st. If you live on the coast, home insurance is expensive. So expensive that some people choose not to purchase it (if there is no mortgage on the property). Flood insurance is even more expensive. And few people buy it. Then, when a hurricane hits, the non-insured and under-insured find a "good" lawyer (and premiums go up for everyone...again, getting off topic).

As we do the beginning of every June, our Company sent out a memo to all associates and agents regarding binding authority restrictions during hurricane season. If a tropical storm or hurricane watch or warning is announced, new home insurance cannot be written, deductibles cannot change, coverage cannot be added. Once a watch or warning is issued, insurance can no longer be purchased. The time to prepare is over.

As with most analogies, not all details/comparisons apply. But here are a few for consideration:

1) Like purchasing insurance, preparation for the Second Coming may seem like a burden.

2) Unlike insurance, you WILL eventually need that preparation.

3) In contrast to insurer's goals to avoid adverse selection, the Savior welcomes adverse selection and provides us all an equal "price."

4) There is a 100% chance of a "claim" to be filed.

5) There will never be a "financial loss" for time spent practicing the Gospel and preparing ourselves and our families.

6) The "watch" and "warning" has already been announced, however...

7) Until the Second Coming actually occurs, there is still time to practice and prepare.

8) But there will come a point when our preparatory state is over. And we will account for how we have spent our time and our talents.

9) When that "hurricane" reaches shore, our homes and our lives must be secured and on firm foundation.

10) I'm glad I have Jesus as my "claims adjuster." Because even with the best preparation, my home (aka family) and my life will need more ___ (fill in the blank) than I am able to do on my own. And He will do much more than simply indemnify us.

Then shall the kingdom of heaven be likened unto ten virgins, which took their lamps, and went forth to meet the bridegroom. And five of them were wise, and five were foolish. They that were foolish took their lamps, and took no oil with them: But the wise took oil in their vessels with their lamps. While the bridegroom tarried, they all slumbered and slept. And at midnight there was a cry made, Behold, the bridegroom cometh; go ye out to meet him. Then all those virgins arose, and trimmed their lamps. And the foolish said unto the wise, Give us of your oil; for our lamps are gone out. But the wise answered, saying, Not so; lest there be not enough for us and you: but go ye rather to them that sell, and buy for yourselves. And while they went to buy, the bridegroom came; and they that were ready went in with him to the marriage: and the door was shut. (Matthew 25:1-10)

Be prepared this hurricane season.