In the previous article has described the selection of vehicle insurance. Here is a continuation of previous article.
In assessing the financial strength of this there are some benchmarks that need attention:
- Assets and liabilities. This can be seen from the financial balance sheet is published in the newspaper. See also, whether the investment is planted in the current or longterm. In terms of liability (the 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.
- Underwriting Policy. On the balance sheet and annual report will be seen that the insurance is still a profit, or profit growth. This means underwiting policy was good.
- Underwriters him. Insurance has personnel qualified or not. It is known from the profile companies that includes the underwriters him.
Services (service) is the extent to which a 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.
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 these insurance companies reinsurance in-class safety. This can be seen from its annual report. It is important to note, because if the company is not backed up by reinsurance, the company is likely to be speculative in receiving the premiums.
Today the government has set a benchmark of health insurance (not the only one) is through mekanime RBC (Risk Base Caital). If the 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 also be a large company that is doing great expansion like to open many branches, then his RBC numbers would be small.
Conversely, there is a small insurance company but never to expand, the RBC number was probably much greater.
Thus, RBC numbers can not be used as the sole measure of whether the insurance company is healthy or not. 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 company's management behavior during this time. Is there a management company for this broken promise? Has this company experienced management defaults and others.
