Criteria for a Good Insurance Company


All insurance companies claim that they are the best. A number of advantages put forward by the insurance company to convince many people. It could be that what he says is different from everyone's view.

Actually, good performance insurance criteria can be known from a number of benchmarks commonly used to rank insurance company performance. From there compiled a list of insurance companies that are performing well.

10 Criteria for Assessing Insurance Companies with Good Performance

According to InfoBank's rating in InfoBank's Rating 123 Insurance, here are 10 assessment criteria for insurance companies categorized as performing well.

1. RBC: How Healthy is the Insurance Company?

Risk Based Capital (RBC) is used to measure how safe an insurance company is financially or how healthy an insurance company is. Healthy or sick financial condition of the insurance company is reflected in the size of the RBC ratio. A healthy insurance company usually has a large RBC ratio.

2. What is the Insurance Company Liquidity Ratio?

How well the insurance company is able to manage finances well and how well it can meet obligations such as debt depends on the liquidity ratio. The high liquidity ratio indicates that the financial condition is in good condition.

3. How Big is the Guarantee Fund to Protect Insurance Customers?

Guarantee Fund is an asset of an insurance company that is used as the last guarantee in order to protect the interests of policyholders, insured, or participants.

4. Investment / Technical Reserves Plus Debt Claims

Used to determine the company's ability to pay obligations to policyholders in the long run. The 100% figure is a benchmark to find out investment / technical reserves plus debt claims. Equal to or more than 100% is included in the best category.

5. Fixed Assets / Own Capital

The extent to which the efficiency of the insurance company can be known from the insurance company's fixed assets. No more than 25% is the best number for a well-performing insurance company.


6. Change in Gross Premium

To find out the company's ability to maximize premiums, find out how the insurance company's gross premium changes. If the insurance company gets a value of 33% or more, the insurance company is categorized as the best insurance company.

7. Net Premium Income against Own Capital

How does the strength of their own capital against their own dependents in the insurance company? Less or equal to 300% is the standard of the best insurance companies.

8. Net Investment Income to Average Investment

Find out whether the net investment income to the average investment is equal to or greater than the average investment interest rate. If the same or greater, it means that the insurance company is one of the best insurance companies.

9. Net Claim Expense Ratio

To find a good insurance company, this one ratio must be equal to or less than 100%.

10. Ratio of Profit (Loss) Before Tax to Average Own Capital

Used to measure the ability of own capital in making profits, the best standard must be equal to or more than the average investment interest rate.


4 This Can Also Be A Size

Sometimes prospective customers do not have enough time or knowledge to research the data so they are quickly tempted by various attractive offers provided by the insurance. Well, to minimize things that are not desirable in choosing a car insurance company. The following are 4 criteria for a good car insurance company in addition to the 10 criteria above.

1. How long has the insurance company been established?

The duration of an insurance company can be an easy indicator to examine the performance of an insurance company. Car insurance companies that have only been established for less than one year or only for one year cannot be ascertained in the future. Because the insurance business is a risk business. If you have no experience, the company can go bankrupt.

2. Have a Good Reputation

A reputation cannot be built in a short time. An insurance company with a good reputation on an ongoing basis needs to maintain and improve its performance. To get a car insurance company that has a good reputation, you can find information from various sources both from social media or from people around you.

3. Have Many Partner Workshops

Partner workshops are the spearhead of car insurance services. The more partner workshops, the better the service because the more accessible the vehicle owner. Customers will feel comfortable without fear when they want to travel.

With the number of partner workshops available, if something unexpected happens to your car on the road, all you have to do is call the relevant parties and wait until the car repair is complete.

4. Affordable Premium

A good insurance program doesn't have to be expensive. The performance of a good car insurance company can also be seen from the premiums offered. If you are careful, a good car insurance company can offer affordable and good quality premiums.

Each company offers a different premium price. Adjust the premiums offered with the budget you have. A good car insurance company will certainly help you get a suitable premium.


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