8 important tips for choosing the right insurance company

Buying insurance can be a stressful process; of course, the definitions, terms, coverage and exclusions can create confusion and possibly give you a headache. Buying insurance is not entirely exciting or fun. But imagine your life without insurance. Imagine losing everything you own to a fire and not having insurance to help get your life back on track.

1. The insurance company’s credit rating The credit

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

AM Best specializes in the classification of insurance companies. The credit rating includes: –

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

(Issuar the Credit Rating (Iraq ICR means classification your company ‘s ability credit to meet its contractual obligations in general.

Can not afford an insurance company to exceed Classification of the country in which you are 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 B classification because the classification of Egypt is B.

AM Best classifies all insurance companies in all countries of the world, counting the United States of America, As for the Kroll Bond Rating Agency (KBRA), which operates in the US market and does not have a presence in the Arab market.

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. Therefore, such prizes must be viewed and the insurance companies that received these awards and their insurance classification should be known.

3. The number of complaints filed against the insurance company

The greater the number of complaints filed against the insurance company, the more it is a bad indication of the performance of these companies, and in the field of insurance, you will usually find that some insurance companies, especially small companies, have submitted a large number of complaints against them compared to other companies, and therefore it is necessary to 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 for insurance companies in Egypt is the Financial Supervision Authority.

4. Paying Compensation The

reputation of the insurance company and its speed in paying compensation to the beneficiaries is a crucial aspect in making the decision to choose the insurance company.

5. Company history and reputation

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

a. The date of incorporation of the insurance company and the period of its presence in the local market.
B. The country in which the main branch of the insurance company is located, and other countries in which the insurance company sells its products.
C. Social interaction, what are the opinions of people on the social media sites of the insurance company that you want to deal with.
Dr.. The types of products that insurance companies sell that have piqued your interest.
E. The economic strength of the insurance company, the company’s issued and paid capital, the size of the company’s business in the market, its investments, assets and profits.

You are unlikely to find a company with only positive reviews for an insurance company, but there is an overall trend of either positive or negative.

6. Ease of doing business. 

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

a. Pay a 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 exclusions, and be aware of the exceptions in the insurance policy that make the insurance companies not pay compensation, and you must obtain a copy of the insurance policy.
8. The price
Do not buy the insurance policy and choose the insurance company on the basis of the price only, as the new companies in the market provide lower prices than the old companies that have a good reputation, and the details in the insurance contract have a big role in determining the price, for example the bearing ratio has a great influence in determining the price of car insurance .
The deductible percentage is the percentage that the customer bears from the compensation when the danger occurs, and the load percentage is used mostly in auto and medical insurance, and if the damages value is less than the deductible percentage, the value of the damages shall be borne by the insured. Only what is more than that is borne by the insurer, who is the insurance company, and it is known that the higher the deductible percentage, the lower the insurance value, and the lower the deductible percentage or it was zero, the greater the insurance value.

In the end, the  last point you will add in the comments, share with  others, do not read and leave.


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