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Chuks Udo Okonta
An insurance company was awarded the Best Insurance Company of the Year in Claims Payment. But today its policyholders are crying over unpaid claims running into several months
This is why you should not be moved into buying policies because of the huge amounts announced by insurance companies as claims payout.
Beside claims payments there are also several factors you have to consider before buying policies from insurance companies.
You should note that a company can borrow money to pay claims so as to look good before the public. This is why claims payment is not enough reason for buying policies.
Other things to consider
*Publications of yearly financial accounts
Publications of yearly financial accounts enables the public to understand the financial status of companies. A company which has consistently failed to showcase its financial statements is not worth doing business with for it may be hiding relevant facts that the public needs to make investments decisions.
*Staff welfare
The health status of a company is better known through the staff. A company that is owing salaries and other benefits can’t sustain its claims responsibility.
*Regulatory sanctions and fines
You should be wary of companies that are regularly sanctioned and fined by regulators. Before buying a policy do background check on the company’s compliance level with its regulators.
*Dividend payout
Struggling companies are not allowed by regulators to pay dividends. A company that has not paid dividend consistently may not be a good place to buy policies
*Profitability
A company state of profitability can only be known through the financial accounts. For companies that published their accounts, you should consider the profitability of the company before buying its products. A company posting loses consistently would in a short time begin to default in claims.
*Management
According to the former Commissioner for Insurance Sunday Thomas, companies don’t die, people kill them. You should consider the track record of people managing a company before buying a policy.
Don’t be trapped by claims payout, go beyond it before paying for that policy today.
