8 important tips for choosing the right insurance company

Buying insurance can be a tiring process. Sure, definitions, terms, coverage and exceptions cause confusion and may give you a headache. Buying insurance is not entirely exciting or fun. But imagine your life without insurance. Imagine losing everything you own due to a fire and a lack of insurance to help get your life back on track.

1. The credit rating of the insurance company

Credit rating is important because it shows the ability of the financial insurance company to pay its obligations as well as its ability to face potential risks, and one of the most famous insurance rating agencies (A.M. Best, Moody’s, Fitch Ratings, S & P’s).

A.M. Best specializes in the classification of insurance companies. The credit rating includes:

 Financial Strength Rating (F.SR) means the strength of the company’s financial position and focuses on the company’s ability to fulfill its obligations to policyholders.

(Issuar Credit Rating (I.C.R.) refers to the company’s credit ability to meet its contractual obligations in general.

An insurance company cannot exceed the classification of the country in which it is located except in the event that it is a branch of a company whose headquarters are abroad, for example, it is impossible for insurance companies operating in Egypt to exceed the classification B because the classification of Egypt B.

A.M. Best classifies all insurance companies in all countries of the world except the United States of America, while Kroll Bond Rating Agency (KBRA), which operates in the markets of the United States of America and has no Arab markets.

The classification of the insurance company helps the confidence of global reinsurance institutions and contributes to improving the terms of reinsurance agreements and strengthens its negotiating position with international reinsurance companies

2. Awards in the field of insurance

In some countries, there are prizes offered to the best insurance company and the best insurance broker, so you should see these awards and know the insurance companies that received these awards and their insurance rating.

3. The number of complaints lodged against the insurance company

The more the number of complaints submitted against the insurance company, the more it is a bad indicator of the performance of these companies, and in the field of insurance you will usually find that some insurance companies, especially small companies, have been filed a large number of complaints against them compared to other companies, and therefore you should see the reports issued by the regulatory authorities The insurance companies that clarify the number of complaints filed against each company, and the supervisory authority overseeing insurance companies in Egypt is the Financial Supervision Authority.

4. Pay compensation

The reputation of the insurance company and its speed in paying compensation to those entitled to it is a critical aspect of making the decision to choose an insurance company.

5. Company history and reputation

Find insurance companies that interest you. By visiting its website and through social media pages, you may know the following:

a. The date of establishment of the insurance company and the period of its existence in the local market.

B. The country in which the main branch of the insurance company is located, and other countries where the insurance company sells its products.

C. Social interaction, what are the people’s opinions on the social media sites of the insurance company that you want to deal with?

D. The types of the products sold by insurance companies that interest you.

E. The strength of the economic insurance company, the issued and paid-up capital of the company, the size of the company’s business in the market, its investments, assets and profits.

It is unlikely that you will find a company with only positive reviews for the insurance company, but there is a general trend, either positive or negative.

6. Ease of doing business.

Understand how you can interact and communicate with the insurance company. Interactions may include:

a. Pay your bill online.

B. Reporting claims online.

C. 24/7 customer service.

Dr.. Social media platforms.

7. Read the insurance policy carefully

You must read the insurance policy well and know the conditions and exceptions. For the information, exceptions in the insurance policy are what makes the insurance companies not pay the compensation, and you must obtain a copy of the insurance policy.

8. Price

Do not buy the insurance policy and choose the insurance company based on the price only. New companies in the market provide discounted prices for old companies that have a good reputation, and the details in the insurance contract have a big role in determining the price.

The bearing rate is the percentage that the customer will bear of compensation when the risk occurs and the loading rate is used mostly in auto and medical insurance, and if the value of the damage is less than the bearing rate, he will bear the value of the insured, but if the value of the damage is greater than the value of the download, the insured bears the value of the burden Only what is exceeded is borne by the insurer, which is the insurance company. It is known that the greater the percentage of the bearing, the less the insurance value and the less the percentage of the insurance or zero, the more the insurance value.

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Subhadarshinee Gouda, 23/06/2022