1. Why people buy protection only after a loss occurs

There is a pattern that those of us working in the insurance industry witness time and again.

After a major fire, demand for property insurance increases.
After a flood, everyone asks about natural catastrophe coverage.
After a high-profile lawsuit, professionals suddenly revisit their liability protection.

Before the event, the risk feels distant. After the event, it becomes urgent.

The question is simple: why?

The answer lies not only in policy wording or premium levels. It lies in the way people think.

2. “It won’t happen to me”

Most people are aware that risks exist. They do not deny them. What they tend to believe often without realizing it is that negative events are less likely to affect them personally.

A small business owner assumes that cyberattacks target large corporations.
Until a simple phishing email shuts down the company’s systems and operations come to a halt.

A homeowner believes their area has “never had issues.”
Until extreme weather conditions exceed every previous record.

A professional assumes lawsuits arise only from serious negligence.
Until they are faced with a claim that, regardless of the outcome, costs time, money and emotional strain.

This mindset: “it won’t happen to me, is deeply human. It allows people to function without constant fear. But in risk management, it becomes a trap.

Because it leads to postponement. Renewals are delayed.
Sums insured are not reviewed and Coverage is kept at a “basic” level.

And all this happens not because risk does not exist, but because it does not feel immediate.

3. The small certain cost vs. the large uncertain loss

There is another powerful factor influencing decisions: the way people compare what is certain with what is merely possible.

An annual premium of €800 for a home may feel significant.
But a €150,000 fire loss instantly changes that perspective.

A €1,400 annual premium for a business might be seen as “expensive.”
Yet a €90,000 loss combined with months of business interruption can threaten the company’s stability.

In professional liability, the issue is not only the compensation amount. It includes legal expenses, reputational damage and operational disruption. In many cases, the true cost cannot be measured in euros alone.

Before a loss occurs, the premium feels like a guaranteed expense.
After the loss, it feels like a modest price for peace of mind.

The perception of value shifts dramatically once risk turns into experience.

4. The role of the Insurance Company: From seller to risk educator

The modern insurance company and insurance intermediary are called to evolve.

In an environment where risks are constantly changing from climate instability to digital threats and increasing legal exposure their role can no longer be limited to the distribution of products.

Today, their role includes:

• identifying new and emerging risks,
• explaining the psychological “blind spots” that influence decision-making,
• regularly reviewing coverage,
• and strengthening a culture of prevention.

Insurance is not merely a contract of indemnity. It is a mechanism of financial resilience.

To achieve this in practice, knowledge is essential.

Effective risk management cannot rely solely on commercial arguments. It requires continuous updates, professional training, and a deep understanding of evolving exposures.

At Minerva Insurance, we believe that education is not a supplementary activity, it is a strategic investment.

For this reason:

• we provide modern educational tools,
• we organize specialized seminars and training programs,
• we systematically invest in the continuous development of our intermediaries,
• and we enhance the technical knowledge and professional competence of our executives and staff.

Training does not only strengthen product knowledge. It enhances the ability to properly assess risk, reinforces ethics and responsibility, and elevates the quality of advisory services.

A well-educated market:

• identifies real exposure at an early stage,
• proposes solutions with accuracy and professionalism,
• explains options transparently to policyholders,
• and builds long-term relationships based on trust.

When an insurance company invests in its people, it ultimately raises the overall standard of the market.

Because at the end of the day, the quality of protection depends on the quality of the knowledge that supports it.

And knowledge is the foundation of every sound insurance decision.

5. From reaction to prevention

It is consistently observed that insurance penetration increases after major natural catastrophes, extreme weather events, or serious loss incidents.

After a fire, a flood, or a high-profile legal case, the need for protection becomes immediate and urgent.

This phenomenon confirms a simple yet fundamental truth:
Protection acquires real value once vulnerability turns into personal experience.

However, the challenge for the insurance industry is not merely to respond after an event occurs. It is to cultivate a culture of prevention before it happens.

Understanding the psychology of the insured is not a theoretical exercise. It is a strategic tool. It helps us recognize why decisions are delayed, why risks are underestimated, and why insurance is often treated as a secondary priority.

At Minerva Insurance, we actively pursue this transition from reaction to prevention.

We invest in awareness, education, and systematic guidance of our partners and policyholders so that insurance decisions are not made under the pressure of an unfortunate event, but as a conscious and informed risk management choice.

Because the true value of insurance is not measured at the moment of loss.

It is measured at the moment someone chooses to be protected before the loss occurs.

And that is precisely where the responsibility and the enduring mission of a modern insurance company lies.

Tonia Despoti

Product Development & Training Manager