I was reading yesterday on the financial blog of https://www.ask-socrates.com/ about the predicted economic downturn in 2018 for Europe.
This got me wondering if there was any insurance product that could be used to combat a situation like this? Yes, of course there are smaller type insurance deals available that protect if one loses their job or has an accident that means they can no longer work, but is there an insurance product that pays out during a downturn of the economy?
If there were such a product, insurance companies would cram it full of caveats, the markets would have to shrink for 2 consecutive quarters – officially in the UK this is known as a recession.
As the recession bit harder there would be more red tape added to stop people claiming, something like people having to have been out of work for 6 months, continuously, and “actively looking for work”. This type of insurance would soon not be worth having as everyone who has it who is not working would be claiming it.
Anyway, let’s see what 2018 brings to the markets in general and to the products offered by insurance companies.