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Chuks Udo Okonta
Don’t incur risks while trying to stem your risk. It is very important that you know the health status of any insurance company you want to insure your risks.
This article reveals some key signs that show that an insurance company is sick.
Failure to pay claims
A sickly insurance company would never pay claims. It is very necessary to check the claims payment history of any insurance company before you buy an insurance product.
*Failure to submit annual financial accounts
A sickly insurance company due to its poor health status would always fail to submit annual financial accounts to regulatory authorities as stipulated in the law.
*Premium rate cutting
As a means of survival, a sickly insurance company sells its products below regulatory approved price, knowing that it would not honour claims payment.
*Regulatory fines
Owing to the poor health status, a sickly insurance company would often break rules that attract fines.
*Poor awareness creation
In order to cover its illicit acts, a sickly insurance company would never want to expose its failing operations to the general public.
*Poor operating environment
The operating environment is one of the signs that show how a company is.
The operating environment of a sickly insurance company is often unkept and unlively.
Before buying that important policy investigate to know the status of the firm’s operating environments.
*Non payment of staff salary
Owing to poor sales and rate cutting, a sickly insurance company can’t pay salary.
An insurance company that is unable to pay staff salaries would not pay claims. This is very key symptom of financial sickness.
*Poor stock price
The unit price of stock of a sickly insurance company at the Stock Exchange, never appreciates.
Ensure you pay attention to the growth of an insurance company before you buy a policy.
*High labour over
A sickly insurance company would find it difficult to attract an retain quality staff.
The staff of such firm use its internet to look for good paying jobs.
Aside the aforementioned symptoms there are others. It is very necessary to check the status of any insurance company you want to insure.
