7 things that you have to consider before choosing an insurance company
Insurance is a risk management business wherein an insurance company hedges itself against risks to individuals or businesses. Risks can be contingencies, uncertain losses, injuries and damages (be it physical, monetary or reputation). An individual or business transfers this risk to an insurance company through an insurance policy. Since, there are innumerable Insurance Companies, most of them offering similar looking products and services, people always ask this question – what are the 7 things that I should consider before choosing an Insurance Company. The straight answer is – does an insurance with the particular company provide you a “peace of mind” always.
First – If you are an individual consider whether your safety, well-being and your liabilities are taken care of. If you are a business consider whether your business reputation, business continuity and your liabilities are taken care of.
Second – Is the company having a sound business approach and ample wisdom in the area of your insurance? The evidence for this can be obtained through consumer forums, through private rating agencies and through feedback from friends and business peers.
Third – Does the company show all round excellence in its business process? Is the company a sound business entity backed by financial stability? Are the products comprehensive enough? Is the company’s website up to date and provides the same information as that shared with you.
Fourth – Are the companies transactions quick, effective and friendly – Is the company having reliable agents. Is the company having adequate customer service facilities (like phone numbers, emails addresses and escalation charts) and finally is the company having a network of offices and agents where you can go to.
Fifth – In a risk situation, one of the earliest people you call is your insurance company. You expect an immediate response and a timely resolution. How good and extensive is the response network. What is the company’s preparedness to assist you (evidence can be a risk pool). If they are assisting you through a service provider – how extensive is this network and quality of these providers. Sometimes affiliates themselves give a feedback e.g. a hospital or a car garage is likely to tell you about the insurance company.
Sixth – The ability to pay claims and to meet its obligations to its policyholders. How flexible and easy is its claims handling process. How result oriented is its claims process. Is the company keen to work on your claim or quick to reject a claim? Evidence of this can be gained through customer call ratios published on websites or rating agencies.
Seventh – Do they have pricing and plans for you – your budget, your specific insurance category, your discounts, your local needs and your statutory requirements.
After all these 7 things have been considered and you have ultimately chosen your Insurance Company, you then need to work with the company or the agent to get the best price, best coverage and the right paperwork. Sign on the dotted line and get a “peace of mind” not once, but always.