Do we work in an industry riddled with dishonest people scheming to deceitfully and fraudulently misguide consumers? Apparently so, based on this article about the latest “disrupter” that was recently brought to my attention:

“How Will Ethereum & Blockchain Services like WeTrust Disrupt Insurance?”  (Note: This article has now been removed.)

The author is apparently an “insurance professional” at Crum and Forster and also, according to the byline, a “Blockchain enthusiast, animal welfare & environmental preservation promoter, technology obsessed.”

I would suggest you peruse the article and you’ll find statements like this:

“[The insurance industry] truly is an antediluvian business that…has been riddled with fraudulent behavior…more concerned with dishonest, get-rich-quick schemes…confusing language used to show coverages and exclusions in an insurance policy is often an attempt to misguide and sway customers to purchase coverage that they do not need…Insurance companies also overcomplicate the language they use for the purpose of not having to pay out the full amount in the event of a claim…this deceitful nature of traditional forms of insurance…

“WeTrust has created a platform on this blockchain to enable users to share funds more quickly and safely with one another without having to go through the difficult process of finding the right type of insurance. Their service essentially eliminates the need for multiple insurance policies (auto, home, health, life, etc.) and creates one aggregated pool of funds that you can share with your closest friends and family.

“WeTrust also eliminates the need for hiring a broker or agent to work with you and the insurance company, which, in turn, saves both you money, time and effort. The traditional system of outsourcing to a brokerage firm to give a percentage of your premiums paid into the insurance service is outdated and a complete waste of resources from both the customer and company perspectives.

“Why should you pay an additional amount in premium on a monthly basis just so you can pay a broker a glorified finders fee?”

You can learn more about the WeTrust Vision here.

I don’t know about you, but my “closest friends and family” would have a very difficult time coming up with funds to pay a team of attorneys to defend me in a multi-million-dollar liability lawsuit, not to mention the indemnity cost if they lose. And what kind of a pool of funds could our “closest friends and family” accumulate, say, in a week to pay for two of our homes destroyed by a tornado? And, if everyone’s “closest friends and family” are above reproach, then who are all of these dishonest, deceitful frauds ripping off everyone? Aren’t they all someone’s “closest friends and family”?

I bet most insurance companies didn’t even realize that the reason they have complex, “overcomplicated” legal contracts (aka “insurance policies”) is not because of centuries of litigation interpreting them, but rather a conscious, deceitful effort “for the purpose of not having to pay out the full amount in the event of a claim.” And all you agents out there…what’s with these “glorified finders fees” you charge in exchange for absolutely nothing of value for your customers?

I wonder when I read things like this and watch the news daily if this time in history will someday become known as The Age of Enlightened Ignorance.

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Bill Wilson

Founder at InsuranceCommentary.com
One of the premier insurance educators in America on form, coverage, and technical issues; Founder and director of the Big “I” Virtual University; Retired Assoc. VP of Education and Research from Independent Insurance Agents & Brokers of America. Reprint Request Information

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