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Chuks Udo Okonta
Buying an insurance policy is an investment decision that should be taken with absolute care, so as not to incur more risks in a bit to mitigate a risk.
The hope of every policyholder is to have a respite from his or her policy at the time of risk.
This is why in our previous edition we wrote on conducting ‘Know Your Insurer’ (KYI) before parting your hard earned income.
In this edition we would highlight some red flags that you should be wary of in buying a policy from an insurer.
Red flags depicting that an insurer may not be trustworthy
* Rate undercutting
Any insurance firm that engages in unethical practices such as undercutting rates and sells policies below stipulated premium, would definitely find it difficult to settle claims arising from such transactions.
Such a firm may be interested in premium collection and never care about settling policyholders that bought the undercut policies.
* Incessant regulatory fines
Insurance firms with numerous fines from regulators, might be having internal issues that would affect their commitments to sold policies.
* Erratic employees
A company’s structure is portrayed by the character of its employees. Erratic behaviour exhibited by employees often times, is a reflection of how motivated they are. A company that fails to motivate employees, would be careless about its clients.
* Litigations
If you don’t want to join the league of litigants against a firm, you should be wary of any firm that takes pride in litigation.
* Poor service delivery
An organisation is the service it renders. An insurer with poor service delivery, should never be trusted with your risk to manage.
* Poor technology deployment
Any insurance firm that still operates manually in this era, should be related with great caution.
Insurance transactions can only turn out good, if handled by a fit and proper underwriting firm. To avoid creating bigger risks from a risk transfer, ensure you Know Your Insurer.
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