Insurance Nerd Day on July 18 celebrates the insurance industry and helps raise awareness about the importance of insurance in our daily lives.
It was created in 2016 by an insurance company in the United States as a way to showcase the profession and dispel general misconceptions about how staid and boring the field can be.
Insurance is a form of risk management, where a person or company agrees to pay out financial compensation in case of accidents, disability, natural disasters, ill health, or death. To receive the payouts, the insured has to buy the insurance by paying the insurer premiums, usually monthly.
There are different kinds of insurance, including life, health, automobile, business, home, travel, and credit insurance.
While insurance does not reduce risks, it can help mitigate the financial losses and hardships that accompany unexpected adverse events.
The cost of insurance depends on the number of insured entities—the more people pay into the pool, the lower the premium. The calculations of how much to charge people are so complicated that it is a field of study known as actuarial science.
Actuarial scientists calculate the premiums based on a variety of statistical factors. For example, the amount a company can charge for automobile insurance depends on the age and health of the driver, the condition of the car, and their history of driving.
Not a Boring Profession
Due to the complicated nature of the industry and the strict educational requirements for entering it, many people think that an insurance company is a boring and staid place to work. It is this image of insurance workers that this holiday is trying to change.
Insurance professionals play an important role in society and help people during some of the worst times of their lives.
How to Celebrate?
If you know an insurance agent, use this day to thank them for all the work they do.
If you know a mathematically-inclined young person, encourage them to learn more about actuarial science as a field of study and future profession.
Take the day to make sure you are adequately insured so that in case of an accident, you and your loved ones are covered and protected.
Did You Know...
...that ancient Greeks and Romans had a form of health and life insurance? Thiasoi or benevolent societies were set up to help the sick and the bereaved.