Liga Asuransi – Dear readers, how are you? Hope your business is doing well.
This time we will be discussing the need to select the best insurance company to ensure that you get the best protection.
For your information in Indonesia, there are 77 general insurance companies while you may only need 1 or 3 companies. Then how to choose the best ones?
Choosing an insurance company and policy is difficult because this simply isn’t something that any of us use on a day-to-day basis. We make sure we have health insurance or auto coverage, then stick it in a drawer hoping not to need it. So, picking a plan and a company is anything but easy.
First, there is the jargon. Words such as exclusions, endorsements, and premiums are bound to send you running to Google and the definitions you may find there provide little enlightenment.
If you’re not working directly in the insurance field, odds are you don’t know that much about it. This lack of knowledge can make purchasing insurance seem a bit overwhelming.
Secondly, what should you buy and with? There are many types of policies such as motor, home, and life, to name a few, and some classes even have varying limits of cover.
Still, it doesn’t have to be random. There are a few basic factors you should look for when selecting an insurance company.
This article teaches you some essential things to consider when selecting an insurance provider. Having quality insurance policies with a quality insurer is a necessary part of life.
- Check their history
Before you make that final choice, do some research, and learn about the insurance company’s reputation and history. This information can also give you valuable insight into their character. The things to consider are:
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- How they contribute to their community
- Length of time in the business
- Types of reviews they receive
- Coverage
Some records have been written about how insurance companies try to avoid paying claims, but the theme is consistent: if your insurance company doesn’t pay, it’s just a money sink.
Now, because of this, insurance companies have developed something of a bad reputation.
One of the most consistent problems that consumers have with insurance companies is that they file for losses, only to have their claims rejected. The number of games that insurance companies play in this regard is beyond the scope of this, or any, article.
- Price and Premium
Price is important, and while you might want to shop around for a bargain, be mindful that you get what you pay for.
Prices vary among insurance companies. A lower premium may be enticing, but it may also indicate that you are getting less coverage and inadequate service. However, a higher premium may be attached to a policy offering more comprehensive coverage with a company committed to providing an enhanced customer experience.
Remember, costs may also be directly related to the risk evaluation and your specific circumstance.
Select a company that provides appropriate coverage for all your needs. Be specific, ask what is covered and for an explanation of the ‘exclusions’ before you sign on the dotted lines. This will prevent disappointment if you must make a claim on your policy.
The most important question to ask about an insurance company is simple. You’ll make your payments on time and in full. Will they?
This is arguably the most important question when choosing an insurance company.
This reflects financial strength. When you choose an insurance provider, you want to be confident that when the time comes for you to make a claim, they can honor it as quickly as possible.
Your relationship with an insurer is standard: They set a rate based on the risk they feel you pose. You pay that rate on a regular basis, and in exchange, the insurance company promises to cover your losses in case something happens.
- Deals and Discounts
Now that you’ve reviewed the price, is the insurance company flexible by offering payment plans? We’ve identified that insurance is essential, but the cost can be prohibitive for some, especially if the full payment is required upfront.
So, when you’re shopping for your insurance company, you can ask what the payment terms are. Also, what are the discounts, such as no claims bonuses, offered if you are a good driver, for example?
- Ease of doing business
How easy is it to do business with your insurance provider? Are they available to you when you need them most? Here are some things to consider:
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- Access to policy information
- Hours of availability
- Knowledgeable staff
- Online chat
- Online claim reporting
- Referrals/References
If a company comes highly recommended by its clients, that will indicate if it is a good choice. Talk to policyholders about their experiences or check out their website or social media pages to read honest reviews.
- Customer Service
Customer service is vital; it can make or break a company. Does your insurance company have customer service representatives to provide information about services or help in situations where customers need that personal touch?
When you need someone to guide you through the process of a deductible, a claim, or renewing a policy, it helps to know someone is accessible. A representative with information is just a call or email away, especially when you need that information quickly.
- Digital Capabilities
Digital technology makes doing business remotely so much easier. It presents the option to make payments and submit documents from the comfort of your home, office, or on the road.
Does the company you’re considering provide the convenience of filing a claim, paying for your policy, or having a question answered with a few clicks on the keyboard?
How to Choose the Right Insurance Company
Insurance is essential across many different parts of life. It can also be hard to find. Here are a few key things to watch out for.
- Check Their Customer Service
Call their customer service line a couple of times before making a commitment.
Make sure that you can ask questions and get a clear, committed answer from an insurance company’s customer service representative. Ask if they’re willing to follow up by email and pay attention if they resist putting anything in writing.
Check how long it takes to get a representative on the phone, and whether they’ll have a real conversation or try to hustle you off.
It’s unlikely that you’ll ever fully understand an insurance policy by just reading the contract (and the fine print). Customer service will be essential.
- Can They Pay Their Bills?
Large insurance companies rarely have problems covering their claims. If you buy from strong insurance companies, you can be relatively confident that they’ll have the money on hand when you ask them to pay a bill. They may choose not to do so, but that’s a separate issue.
With smaller companies, though, this is a bigger problem.
If you buy insurance from a local company, make sure that they have the financial strength to pay out claims when you file them.
The Insurance brokers have an excellent list of firms that rate the solvency of insurance companies besides (Firms like A.M. Best and Fitch track the finances of insurance companies, rating them on their ability to pay claims when their consumers need it.)
Shop carefully. It’s easy for consumers to believe that insurance products are largely flat across companies, but the truth is that each one evaluates risk differently. This means that every company will offer you a different mix of coverage, price, and out-of-pocket expenses based on your personal circumstances.
- Why do you need an insurance broker to get the best insurer?
An insurance broker acts as an intermediary between you and an insurer. Armed with both your background and their insurance know-how, they can find a policy that best suits your needs for a reasonable price.
While brokers can save you time and money, you may have to pay a broker fee for their services.
- When to use an insurance broker
Brokers are usually best suited for people who have more complicated insurance needs, like a landlord or small business owner who needs several policies.
We expect insurance brokers to demonstrate that they have carefully considered the insurers whom they place their customers’ business with.
Suitable due diligence is a key part of the process that we expect insurance brokers to perform on the insurance companies they use.
Our main concern is the risk to customers in the event the insurer fails and is unable to pay claims.
Insurance brokers have a vital role to play.
The customer sees brokers as trusted professional advisers and experts on insurance matters. We expect brokers to be able to demonstrate that suitable due diligence has been performed on the insurers whom they place their customers’ business with.
Examples of due diligence
Here are some examples of what brokers should consider as part of their insurer due diligence:
Insurers’ Solvency and Financial Condition Report: A key figure and indicator is the solvency coverage percentage.
As brokers, you should be comfortable that you are placing your customers’ business with an insurer where you would be happy to be a policyholder.
One of the experienced insurance brokers in Indonesia in selecting the best insurance for you is L&G Insurance Broker. Call L&G now!
Sources:
- https://www.fca.org.uk/firms/insurance-brokers-due-diligence-insurers
- https://www.nerdwallet.com/article/insurance/insurance-brokers
- https://www.thesilverlining.com/westbendcares/blog/eight-tips-for-choosing-the-right-insurance-company
- https://www.thestreet.com/personal-finance/insurance/how-to-choose-insurance-company
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L&G HOTLINE 24 HOURS: 0811-8507-773 (Call – Whatsapp – SMS)
website: lngrisk.co.id
E-mail: customer.support@lngrisk.co.id
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