- Prospective customers are not tempted at low premium rates. Therefore, in today's competition, many insurance companies that offer low premium rates. Though there is not necessarily a guarantee of service.
- See the insurance package offered. For example, extensive collateral to how much. Therefore, extensive collateral should be adjusted with the desire and ability to prospective customers.
- See also the network of the insurance company concerned. For example, how many have branches or how many have workshop partners, so that there is a claim not wait long to repair the vehicle or vehicles reported missing.
- Could be asked first ease, facility or what added value can be obtained when purchasing policy in the company. For example, if there is a tow truck, replacement car or hotline, mechanic services, ambulances and so forth. And, last but not least is the ease to make changes and the ease in asking.
- Needs to be considered also the reliability of the insurance company. Do not get so there is a claim, workshop partners did not have. Therefore, many insurance companies claim they are the best. Whereas financial condition was very severe.
In addition to the above, there are several factors that should be considered in the process of selecting an insurance company included in choosing products. 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, services. And third, the cost or burden. 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 there claims of customers, the company can not afford to pay.
In assessing the financial strength of this there are some benchmarks that need to be considered.
a. 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 appear in the balance sheet, how the debts by reinsurers, how he fulfilled his obligation to pay claims, and so forth.
Indicators liabilities include equity divided by net premiums of at least 50%. Own capital divided by gross premiums of at least 20%. Limit solvency levels, as seen from its own capital divided by net premiums of at least 10% and investment funds technical reserves divided by at least 100%.
b. Underwriting Policy. In the balance sheet and annual report will be seen that the insurance is still a profit, or profit growth. This means that the policy underwiting great.
c. Underwriter. Insurance has qualified personnel or not. It is known from the company profile that includes the underwriters.
Services is a mirror to what extent 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 this connection it should also be questioned, whether the insurance company reinsurance mereasuransikan first-class safety. It can be seen from the 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 premium.
The problem is how much the cost incurred by the insurance companies in operation. If greater than the cost of income, then obviously the company is not efficient. If it is not efficient, it will end up losing money. And, if you continually lose, 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.
Today the government has set a benchmark of health insurance (not the only one) is through mekanime RBC (Risk Base Capital). 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 a massive expansion like to open many branches, then his RBC numbers would be small.
Instead, 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 only measure, 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 over the years. Is there a management company for this broken promise? Has the management of the company is experiencing defaults and so forth.