It is compulsory in 45 states. Homeowners are also forced by their lenders to purchase home insurance as a condition of their mortgage. Where there is no legal or other obvious compulsion, consumers are reluctant purchasers, as in the example of jet skis. There are a number of factors that suggest that the industry increasingly will be devoting more attention to the aggressive marketing of our products. On a basic level the strong economic growth of the past few years has greatly expanded family incomes.
People have a lot more to spend on goods and services.
The income of the average family in the United Sates is three times the cost of basic living. This means that about two thirds of family income is discretionary. People spend this discretionary income in two areas. They also spend more on non-essentials, ranging from pedestrian items like radios and television sets to more luxury items like snowmobiles and jet skis. Insurers can take advantage of the growing amount of discretionary income in two main ways.