How do I choose a good insurance company is not easy. Especially in the midst of intense competition among insurers as it is today.
Many insurance companies now claim they are the best. It can be seen that there are insurance products are offered to the public through advertisements, almost none the less. Similarly, the performance of which they are doing, always accentuate the fine. Management of insurance companies rather rarely express their weaknesses naturally.
But there are several factors that should be considered in the process of selecting an insurance company, especially for life insurance and losses.
one thing you need to remember that in choosing a private insurance company, then that should be considered in general are three factors: First, the financial strength (security). Second, service (service). And third, the cost.
Financial concerns insurance 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, good directors vehicles. But when there claims from customers, the company is unable to pay.
In assessing the financial strength of these there are several benchmarks that need to be considered.
Importance of 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 longterm. In terms of liability (ability to pay off liabilities) will look at the balance sheet, how the debts by reinsurers, how he fulfilled his obligation to pay claims, and so forth.
Then how Indicators of net liabilities include equity (own capital) divided by net premiums (net premiums) of at least 50%. Own capital 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 at least 100%.
Importance of Underwriting Policy. In the balance sheet and annual report will be seen that the insurance is still a profit, or profit growth. This means its underwiting polcy good.
Its underwriters. Insurance has personnel qualified or not. It is known from the profile of companies that includes the underwriters him.
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 claim. In addition, about the service may actually be felt by the customer. Is the insurance company was absolutely the best services for its customers.
The question? whether the insurance company's reinsurance mereasuransikan 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 premiums.
Then how the issue 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's 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. Where the quality is really good.
Today the government has set a benchmark of health insurance (not the only one) is through mekanime RBC (risk capital base). If RBC number was large, this means the company is valued in good condition. But we should not be fixated solely with RBC numbers. Therefore, it could be a large company that is doing such a massive expansion to open many branches.
Instead, there is a small insurance company but never to expand.
In this case, also noteworthy is the company's performance in the last two or three years. How big profits every year, how much gross premiums they receive each year, how much additional capital and assets every year.
And last but not least is how the behavior of the company's management over the years. Is there a management company for this broken promise? Has this company experienced management defaults, and so forth.