Only few people will be ready to listen to you when you try to sell them on the benefits of buying insurance. As for the majority, they will either cut you short, bring up another topic, or hit the roof. As an independent insurance agency or agent, you need to know how to deal with such situation.

Most people—including those who have bought one type of insurance or the other—hate insurance companies. They think insurance companies are bad. They think insurance companies are bullies. And they think insurance companies are problems in themselves.

Why do people hate insurance companies so much? Why do people describe insurance companies with the worst adjectives they can ever think of? Why do insurance policy holders think they’d be better off without insurance? Well, here are seven reasons why most people think insurance companies are bad:

7 Reasons Why People Think Insurance Companies Are Bad

1. Insurance products are complicated

Many people think insurance is just too technical and is typically written by lawyers for lawyers and employees of insurance companies. It never seems the layman is their target.

Insurance documents and product descriptions contain hundreds of different technical terms and jargon that end up inducing the reader to sleep. Hardly can the non-professional understand the terms and conditions of insurance companies without the help of an agent or a broker. And heck, many agents and brokers don’t understand the terms themselves. They are in the business to make money, not to teach!

2. Insurance companies cannot be trusted

Many people really feel that people in the insurance business are out to get them. Some are just paranoid, but many others have had nasty experiences with insurance companies in the past that justify their lack of trust. It could be lack of service from an insurance agent or broker. It could be unfair treatment on a claim. Bad experiences have really given the insurance company a very bad image.

The urban dictionary defines an insurance company as, “An affiliation of pirate-gamblers who accept bets called premiums. The dollar amounts of the premiums are non-negotiable but the amounts of the claim settlements, should the company lose the bet, are rarely delivered without argument.” And this definition, though funny, is a true reflection of the general perception of insurance companies.

3. Insurance is unreasonably expensive

Many people are of this mindset because they don’t understand how premiums are calculated. Even many insurance agents and brokers feel completely at sea when it comes to explaining how insurance companies come about their rates. Only actuaries understand how to calculate risk and probability of certain outcomes.

4. Insurance companies reject claims

Insurance companies are businesses in themselves, and they want to make as much profits as possible for their owners. This explains why they are very reluctant to release funds to insurance buyers. While it’s normal and acceptable to scrutinize every claim as a way to prevent being gamed with fake claims, many insurance companies overdo this and try too hard to find flimsy excuses to capitalize on. Only few things could be more frustrating than being unfairly treated on a claim that you have insured against for years.

5. Insurance products are intangible

That you can see or feel the product you are buying is enough motivation to buy that product. Insurance isn’t something you can feel with any of your senses, minus holding a signed contract—and that’s another reason why many people hate insurance. A justifiable reason it is, but very little can be done to help it.

6. Insurance products bring no immediate ROI

The ROI (return on investment) on insurance products, when obtainable, is not instant. When you visit the gym, you leave the place feeling fit and better, and that’s the ROI. But in the case of insurance, you only keep making monthly payments for a product that you may never use or even need.

7. Insurance companies raise claims unduly

Insurance companies often raise premiums when a buyer makes a small claim. Why? Because they believe you are more likely to file additional claims, so you pose a higher risk to the company. So, if you hold an auto insurance policy and your vehicle pick a fault, you will have your premiums raised should you file a claim for that fault.

Similarly, when certain indications place you at higher risk of filing a claim, the insurance company increases your premiums as a defense tactic. For example, if a health insurance holder reaches age 50, the insurance company will most likely raise their premium because they think you have reached an age when you are more likely to come down with illnesses.