All insurance companies claim to be the best. A number of advantages were stated by the insurance company to convince many people. It could be that what was said was different from everyone’s view.
Actually, the good performance insurance criteria can be known from a number of benchmarks commonly used to rank the performance of insurance companies. That’s where a list of well-performing insurance companies is arranged.
10 Criteria for Assessing Good-Performing Insurance Companies
According to InfoBank’s assessment of InfoBank’s Version 123 Insurance, the following are 10 assessment criteria for insurance companies that are categorized as performing well.
- RBC: How Healthy is an Insurance Company?
Risk Based Capital (RBC) is used to measure how secure financial insurance companies are or how healthy insurance companies are. Healthy or ill financial condition of the insurance company is reflected in the size of the RBC ratio. A healthy insurance company is usually a large RBC ratio.
- What is the Insurance Company Liquidity Ratio?
How capable an insurance company is to manage finances well and how capable it is to fulfill obligations such as debt depends on the liquidity ratio. The high liquidity ratio indicates that the financial condition is in good condition.
- How Big is the Guarantee Fund to Protect Insurance Customers?
Guarantee Fund is an insurance company asset that is used as the last guarantee in order to protect the interests of policyholders, insured, or participants. Regarding this Guarantee Fund, there are rules regarding the Financial Health of Insurance Companies and Reinsurance Companies.
- Investment / Technical Reserves Plus Debt Claims
Used to determine the company’s ability to pay its obligations to policyholders in the long term. The 100% figure becomes a benchmark for knowing technical investment / reserves plus claims debt. The same as or more than 100% includes the best category.
- Fixed Assets / Own Capital
The extent to which the insurance company’s efficiency can be known from the insurance company’s fixed assets. No more than 25% is the best number for a well-performing insurance company.
- Gross Premium Change
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.
- Net Premium Income against Own Capital
What is the strength of your own capital against your own dependents in insurance companies? Less or equal to 300% is the standard of the best insurance company.
- Net Investment Income to Average Investment
Find out whether the net investment income to the investment average is equal to or greater than the average investment interest rate or not. If it’s equal or greater, that means that the insurance company is one of the best insurance companies.
- Net Claim Load Ratio
To find a well-performing insurance company, this one ratio must be equal to or less than 100%.
- Prior Tax Profit (Loss) Ratio to Average Own Capital
Used to measure the ability of own capital to make a profit, the best standard must be equal to or more than the average investment interest rate.
3 These Things Can Also Be Measured
Sometimes prospective customers do not have enough time or knowledge to research data so that they are quickly tempted by various attractive offers provided by insurance companies. Well, to minimize unwanted things 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 length of time an insurance company stands can be an easy indicator to examine the performance of insurance companies. for example Tulsa Insurance, Tulsa Insurance is a car insurance company that has been established for a long time.
2. Have a Good Reputation
Reputation cannot be built in a short time. A reputable and sustainable insurance company needs to maintain and improve its performance. To get a reputable car insurance company, you can search for information from a variety of sources whether it’s from social media or from people around you.
3. Affordable premiums
A good insurance program doesn’t have to be expensive. The performance of a good car insurance company can also be seen from the premium offered. For example, auto insurance in tulsa. Car insurance at Tulsa is a good car insurance company and can offer affordable and good quality premiums.