Choosing a good insurance company is not easy. Moreover, 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 they do, always accentuate the fine. Management of insurance companies rather rarely express their weaknesses are natural.
However, there are several factors that should be considered in the process of selecting an insurance company, especially for life insurance and loss.
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 (service). And third, the cost.
Financial strength of insurance related to the company’s financial ability to keep its promise if the situation requires. It is important to know, because not a few insurance companies are looking beyond just good. For example storey building, vehicle good directors. But when there claims of customers, the company can not afford to pay.
In assessing the financial strength of these there are several benchmarks that need attention.
- Assets and liabilities. This can be seen from the consolidated balance sheet is published in the newspaper. See also, whether the investment is planted in the current or longterm. In terms of liability (ability to pay off liabilities) will look at the balance sheet, how the debts to the reinsurer, 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%. Equity divided by gross premium (gross premium) of at least 20%. Limit the level of solvency, as seen from its own capital divided by net premiums of at least 10% and investment funds technical reserves divided by a minimum of 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 the underwriting policy was good.
- Its underwriters. Insurance has personnel qualified or not. It is known from a company profile that includes the underwriters it.
Services (service) is a reflection of the extent of human resources at the company’s qualified or not. Moreover, the insurance company is 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 claims. In addition, about the service can actually be felt by the customer. Is this insurance company was absolutely the best service for its customers.
In this connection it should also be questioned, whether the insurance company to reinsurers in reinsurance class safety. This can be seen from its 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 premiums.