Many insurance companies claim they are the best. This can be seen if there is an insurance product offered to the public through advertisements, almost nothing is lacking. Similarly, the performance they do, always highlight the fine. Somewhat rarely express insurance company management weaknesses they experience.
Things 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, the service (service). And third, the cost.
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 beyond it classy. For example storey buildings, vehicles that good directors. But when there claims of customers, the company can not pay.
In assessing the financial strength of these there are some benchmarks that need attention.
car insurance
Assets and liabilities. This can be seen from the consolidated balance sheet is published in the newspaper. See also, whether planted in the current investments or long-term. In terms of liability (ability to pay off liabilities) will look at the balance sheet, how the debts on the re-insurer, 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 the level of solvency, which looks 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.
Underwriters him. Insurance has personnel qualified or not. It is known from the profile companies that includes the underwriters him.
Service (service) is the extent to which the mirror 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. Also, about the service can actually be felt by the customer. Is this insurance company was absolutely the best services for its customers.
In this connection should also be questioned, whether the insurance company re-insurance on a first-class reinsurance security. 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.
The problem is how much the cost of expenses incurred by insurance companies in operation. If it is greater than the cost of entry, then obviously the company is not efficient. If it's not efficient, so the edges will incur a loss. And if you continually lose, definitely not healthy.
In this connection could also be price premiums. Compare the price of insurance premiums the same 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 the RBC mechanism (risk capital base). If the number is large RBC, this means the company is valued in good condition. But we should not be fixated solely with RBC numbers. Therefore, large companies can also occur which are conducting a major expansion such as opening more branches, then his numbers will surely RBC small.
Conversely, there is a small insurance company but never to expand, the number of RBC was probably much greater.
Thus, RBC numbers can not be used as the only measure, whether the insurance company is healthy or not.
In this case who is also noteworthy is the performance of the company within 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 company's management behavior over the years. Is there a management company for this broken promise? Has the management of these companies have defaulted, and so forth.
