Insurance and risk management has emerged as a recurring theme in IELTS Writing Task 2, appearing in approximately 15% of tests between 2020-2023. This topic frequently intersects with economics, social welfare, and business management, making it crucial for IELTS candidates to master. As we explore role of insurance companies in economy, let’s analyze some recent exam questions and their model responses.
Recent Exam Question Analysis
Some people believe that insurance companies should not profit from providing essential services like health and life insurance. To what extent do you agree or disagree with this statement?
Question Breakdown
- Topic: Insurance company profits
- Type: Opinion/Agree-Disagree
- Key elements: Essential services, profit generation, social responsibility
- Required approach: Clear position with balanced argumentation
Insurance companies providing essential healthcare services to diverse population
Model Essay 1 (Band 8.5)
The question of whether insurance providers should generate profits from essential services is complex and multifaceted. While I partially agree that basic insurance services should prioritize public welfare, I believe that reasonable profit generation is necessary for sustainable service delivery and industry innovation.
Firstly, insurance companies require profits to maintain operational efficiency and service quality. These earnings enable insurers to build robust infrastructure, employ skilled professionals, and develop advanced risk assessment models. Furthermore, role of financial institutions in crisis recovery demonstrates that financially stable insurance companies are better positioned to handle large-scale claims during emergencies.
Moreover, profit motivation drives innovation and competition in the insurance sector. When companies compete for market share, they typically improve their service offerings, develop more comprehensive coverage options, and optimize their pricing structures. This competition ultimately benefits consumers through better products and more competitive premiums.
However, there should be careful regulation of profit margins in essential insurance services. Excessive profiteering can make crucial coverage unaffordable for vulnerable populations. role of insurance in financial planning shows that balanced pricing is vital for widespread access to protection against life’s uncertainties.
In conclusion, while insurance companies should be allowed to generate reasonable profits, this should be balanced with social responsibility and regulatory oversight to ensure essential services remain accessible to all.
Band 8.5 Analysis
- Clear position with sophisticated argumentation
- Excellent paragraph organization
- Advanced vocabulary and complex structures
- Seamless idea development
- Strong examples and support
Model Essay 2 (Band 6.5)
Insurance companies making profits from essential services is a debated topic today. I think they should be allowed to make some profit, but not too much.
Insurance companies need money to run their business. They have to pay their workers and maintain their offices. Also, they need money to pay claims when people have problems. If they don’t make profit, they might close down and people won’t get insurance.
But sometimes insurance companies make too much money. This is bad because poor people cannot afford insurance. Many people need health insurance and life insurance but cannot pay for it. This is not fair.
The government should control insurance companies. They should make rules about how much profit these companies can make. This will help make insurance cheaper for everyone.
In conclusion, insurance companies should make some profit but not too much. The government should control them to help people get insurance easily.
Band 6.5 Analysis
- Basic position maintained
- Simple organization
- Limited vocabulary range
- Basic argument development
- Lack of sophisticated examples
Key Vocabulary
- Operational efficiency (n) /ˌɒpəˈreɪʃənl ɪˈfɪʃənsi/ – The ability to deliver products or services in the most cost-effective manner
- Infrastructure (n) /ˈɪnfrəstrʌktʃə/ – The basic physical and organizational structures needed for operation
- Profiteering (n) /ˌprɒfɪˈtɪərɪŋ/ – The practice of making excessive profits through unfair methods
- Multifaceted (adj) /ˌmʌltɪˈfæsɪtɪd/ – Having many different aspects or features
- Vulnerable (adj) /ˈvʌlnərəbl/ – Susceptible to physical or emotional harm
Practice Suggestions
Consider practicing with these related topics:
- The role of private insurance in national healthcare systems
- Mandatory insurance requirements in different countries
- The impact of technology on insurance services
Share your practice essays in the comments section for feedback and improvement suggestions. Remember to focus on clear argumentation and balanced perspectives while maintaining appropriate academic tone.
