My own little insurance company.

The SwissRe or Gerkin in the City.

There are ways of saving money that are hiding in plain sight.

I walk past this building every morning but seldom wonder what it means. It is an indication of how much the insurance industry makes from us and how complex it has become. Do we really need their services at all?

First of all, claiming on an insurance policy is hard work. I would far rather have the money at hand and sort everything out directly. This means that I no longer pay insurance premium tax and I receive income from the investments used to cover the risk. Furthermore, insurance risks are far lower than most people think. A burglar does not remove the entire contents of a house. He will take small items that are easily sold such as laptop computers and loose cash. The chief expense of a burglary is usually repairing the damage he caused getting in.

I am saving £500 a month in premium bonds. These are liquid, risk-free, and tax-free. I expect them to cover me from all concevable risks and bring me a prize every two years or so.