Tips on Choosing a Good Insurance Company

 

Choosing a good insurance company is not easy . Especially in the midst of intense competition among insurance companies today.

 Many insurance companies claim they are the best . It can be seen that there is an insurance product offered to the public through advertisements , almost none the less . Similarly, the performance of which they do , always accentuate the fine . Somewhat rarely express insurance company management weaknesses that they experienced .

 However, there are several factors that should be considered in the process of selecting an insurance company especially for life insurance and losses .

The thing to keep in mind that in choosing a private insurance company , then that should be considered in general are three factors : First , the financial strength (security ) . Second , the service. And third , the cost .

 The financial strength of insurance related to the company ‘s financial ability to fulfill its promise if the situation requires . It is important to know, because not a few insurance companies are looking at the flashy exterior . For example storey building , vehicle good directors . But when there claims from customers, the company cannot afford to pay .

 In assessing the financial strength of this there are several benchmarks that need to be considered .

car insurance

 Assets and liabilities. It can be seen from the consolidated balance sheet is published in the newspaper . See also , whether planted in the current investment or long-term . In terms of liability ( ability to pay off liabilities ) will look at the balance sheet , how the debts by re-insurers , how he fulfilled his obligation to pay claims , and so forth .

 Indicators of net liabilities include equity (own capital ) divided by net premiums ( net premiums ) of at least 50 % . Own capital divided by gross premiums ( gross premiums ) of at least 20 % . Limit level of solvency , as seen from its own capital divided by net premiums of at least 10 % and investment funds technical reserves divided by at least 100 % .

 Underwriting Policy . On the balance sheet and annual report will be seen that the insurance is still a profit , or profit growth . This means underwriting policy was good .

 Its underwriters . Insurance has staff who are qualified or not . It is known from the profile of companies that includes the underwriters him .

 Services is a reflection of the extent of human resources at the company’s qualified or not . Moreover , insurance companies are selling a service , so excellent service is the key . For example , the extent to which the speed of service in both the policy issue especially in the payment of compensation or claim . Besides, the matter of service can actually be felt by the customer . Is this insurance company was absolutely the best services for its customers .

 In this connection it should also be questioned , whether the insurance company ‘s reinsurance first-class safety . It can be seen from the annual report . It is important to note , because if the company is not in – backed up by reinsurance , the company is likely to be speculative in receiving the premium .

 The problem is how much the costs incurred by insurance companies in operation . If it is greater than the cost of entry, it is clear the company is not efficient . If it is not efficient , it will end up losing money. And if you continually lose , certainly not healthy .

 In this connection could also see the price premiums . Compare the price of insurance premiums with other insurance . Which is really good quality .