How to Choose a good Insurance

Choosing a good insurance company is not easy. Especially in the middle of a fierce competition between insurance companies as now.

Many insurance companies claim they are the best. It can be seen as an insurance product offered to the public through advertising, almost none the less. Just as with the performance they do, always attracts a fine. Somewhat rarely disclose insurance management deficiencies they experience.

However, there are several factors in the process of choosing a particular insurance company for life insurance and losses are considered.
Things to remember to choose the private insurance companies, it generally should be considered, three factors: First, financial strength (security). Second, services. And third, the cost.


The financial strength of insurance related to the financial ability of the company to promise to come when the situation requires. It is important to know because not a few insurance companies to find out blinking. For example storey buildings, vehicles directors're good. But then the claims of customers, companies can not afford to pay.

In assessing the financial strength is the size that we need attention.
car insurance

Assets and liabilities. It can be seen from the balance sheets published in the paper. See also, whether the investment is invested in the current term. In terms of accountability (ability to pay obligations) will look at the balance sheet, how the debt on reinsurance, how he fulfilled his obligation to pay claims, and others.

Indicators of liability, among others, net equity (equity) divided by net premiums (net premium) amounting to 50%. Has a capital divided by gross premiums (gross premiums) of at least 20%. Limit solvabilitasnya level, as seen from its own capital divided by net premiums of at least 10% and minimum investment fund technical reserves divided by 100%.

Underwriting policy. On the balance sheet and annual report will be seen that security is still a profit, or earnings growth. This means underwiting polcy good.

Guarantor. Security personnel are eligible or not. It is known from the profile companies including the underwriter.

Service (Service) is the extent to which the mirror of human resources at the company's qualified or not. It also sells insurance services, and excellent service is very important. For example, the level of service speed in issuing the policy, particularly in the payment or reimbursement. Also, think about services that can be perceived by the customer. Is this insurance company really the best service for customers.

In this connection it should also be questioned, whether mereasuransikan insurance on a first-class reinsurance security. It can be seen from its annual report. It is important to note, because if companies do not - are supported by reinsurance, the company may be in the speculative premium revenue.


The problem is how much the cost incurred by insurance companies in operation. If greater than those costs, so of course companies are not effective. If not effective, then the edge would be losers. And if you continually lose, definitely not healthy.

In this connection, also in the price premium for the visits. Compare prices with other insurance premiums. Where quality is very good.

Recently the government has chosen one of the size of health insurance (not only) is mekanime RBC (risk based capital). If a large number of RBC, it means that the company is rated in good condition. But we must not only determined by the number of RBC. Therefore, large companies may also prevent a major expansion of doing like opening many branches, and small RBC his numbers.

On the other hand, there is a small insurance company but never developed, the number of RBC may be much larger.

This allows the RBC numbers are not used as the sole measure of whether the insurance company is healthy or not.

In this case, which also distinguish 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 equity capital and assets every year.

No less important is how the implementation of the management company for many years. Is there a management company to disavow a promise? Management of these companies fail, and many others.

I hope that is helpfull.