Many insurance companies claim they are the best. It can be seen that there are insurance products 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 they experience.
However, there are several factors that should be considered in the process of selecting an insurance company especially for life insurance and loss.
Things to remember that in choosing private insurance company, then that should be considered in general are three factors: First, the financial strength (security). Second (service), and third, the cost.
Financial Strength (Security)
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 their claims from customers, the company cannot afford to pay
In assessing the financial strength of this there are some benchmarks that need to be considered.
- 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 be shown in the balance sheet, how the debts by reinsurers, how he fulfilled his obligation to pay claims, and so forth.
Indicators of net liabilities include equity (own capital) divided Nett premium (net premiums) of at least 50%. Own capital divided by gross premiums (gross premiums) of at least 20%. Limit the level of solvency, which is visible from its own capital divided by net premiums of at least 10% and investment funds technical reserves divided by at least 100%.
- Underwriting Policy. 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.
- Underwriters him. Insurance has personnel qualified or not. It was known from the profile companies that includes the underwriters him.
Services are a reflection of the extent to which human resources in 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. Moreover, the matter of 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 insuring the first-class safety reinsurance. 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 premiums.
Cost issues, is how much the costs incurred by insurance companies in operation. If greater than the cost of entry, then obviously the company is not efficient. If it is not efficient, then the edges will suffer losses. And if you continually lose money, certainly not healthy
In this connection can also see the price premiums. Compare the price of insurance premiums with other insurance. Where the quality is really good