How To Select An Insurance Company

Choosing an insurance company to do business with is not an easy task, considering the financial crisis of 2008 and 2009. Worldwide several financial institutions and insurance companies have gone out of business, merged with stronger firms or sold particular divisions of their company outright. Even in the Caribbean, we saw fallouts; one large regional insurer crumbled whiles others winded up operations.

When choosing your insurance carrier, there are several factors that you should consider to help you make a wise decision.  Consider some of the following: 

Financial Strength Ratings

What is the quality rating of the insurance company, as published by the main rating agencies in comparison with their peers? (Standard & Poor's, & AM Best).

A.M. Best and Standard & Poor's ratings both publish financial strength ratings for all insurance companies — these "measure" an insurance company's ability to pay out claims.

Sound Financial Stability

The company you will choose must have a solid financial background. You do not want to end up bankrupt only because your insurer is not on solid footing. A healthy financial background solidifies a company’s paying ability, financial strength, assets etc

Number Of Products Offered

Does the company you are looking at provide a wide assortment of insurance products? Is the insurer a specialist in this area of insurance coverage? Will it provide insurance coverage that is adequate for your needs? What are the deductibles?

Claim Management

It is a good idea to check with the ombudsman or a claims database for how many costumers have complained because of a bad treatment and what kind of claims service does the insurance company have. What is the claim paying process? Also, consider the company's record for claim refusal.

Price

Compare prices and the amount of coverage from at least three insurance companies. When comparing prices make sure you are comparing apples with apples.  Remember this - cheaper is not always better.

Customer Service

How is the customer service, does the company have a complaint history? Talk to other business people in similar fields, get there impression on the level of service. Is it easy to speak to a "live" person and will you be working with the same person?