Can someone tell me where the money is going?

Question

Its not the weather bit I'm on about (but whoohoo anyways), its the bit below that, that an AXA spokesperson has said...

All these people have home insurance, they have paid into a fund to protect there homes from various accidents, criminal intrusions and acts of God. Why the h**l should insurance companies get funding from the government as well? Surely they should be managing their accounts better!

http://uk.news.yahoo.com/skynews/20080721/tuk-hotting-up-summer-finally-here-45dbed5.html

Answer 1

The funding is towards better infrastructures for high flood tendency areas. Better and improved drainage system will minimize floods in residential and commercial areas.

I do not think insurance companies request fundings from government into their investment portfolios.

They request the government to prevent future disasters so that the insurance do not need to raise premium fees on consumer to cover their loss.

If the government takes care of its people better (eg free medical costs, affordable education, low living expenses), then consumers will have no need for insurance.

Answer 2

Read the article a littel more carfully - the insurance company is telling the government that it needs to invest the money in flood defences so that the damage isn't repeated - they are not asking for the govenmetn to give them money!

Answer 3

see batman

Answer 4

i dno

http://answers.yahoo.com/question/index?...

PLEASE HELP! ITS ABOUT ME AND MY GF!

Answer 5

they keep your money so if something happens to your house they use the money to help you out in your problem

Answer 6

i don;t think they get funding from the government...

Answer 7

Above answer is correct. The point is that the government needs to spend more on flood defences etc. Some years ago the insurance industry in the UK agreed not to start excluding certain areas from flood cover etc to give the government time to improve the infrastructure. There is some debate as to whether this has been achieved. If there isn't any further improvement people in high risk areas will almost certainly find it increasingly difficult and/or expensive to obtain insurance against things like flooding