Things to consider when choosing an insurance company

Choosing an insurance company is just like getting someone to keep your money and get it back when in need. You’re trusting the insurance company with your hard-earned money. Now, the insurance company you choose will determine your family’s financial future. That means if you select a reliable one, then the future is safe. That, therefore, means you have to pick the right choice prudently.

With such an introduction, it’s only fair we look at the insurance company that you choose. What should you consider as a priority?


Before anything else, you want to know how the company has been dealing with its clients. Are they reliable? How do they respond to claims? Do they keep their word regarding underwriting? Such and many more questions will tell you the insurer’s “true colors”. The best place to check out for their reputation is on their website’s feedback page or by using an insurance comparison table. What are their clients or former ones saying? Focus more on the negative feedback, it will help you understand their level of customer service, and you can gauge yourself whether you want to work with such. If you notice some disconnect in how they deal with clients, you’ve no reason to waste your time and resources; get an alternative.

The insurer’s history

An insurance company may have that flashy advert sweeping through the airwaves, but you have to discern as an investor and see how long the company has been in the insurance business. Go for an established track record; their claim settlement ratio, available on their site, and the insurer ratings. Consider also the efficacy of their online platform, especially if you want to purchase your policy online. If you’re going to invest in a unit plan, you have to check out their online fund performance. Choose an insurer with steady performance and avoid those with erratic returns.

The size of the company

The size of the insurance company matters much. You need to consider their total assets, growth ratio, and market share in new business premium. That will tell you if they can meet your claim when that time comes.

The quality of their service

Insurance is a service industry and what matters in this space is the quality of the service. The insurer’s attitude toward the customers will tell you the kind of a relationship you’re likely to get into. Is the customer service team responding to your inquiries well? Are they precise in the questions they ask you, or are they just focused on selling the policy to you and then leaving you to suffer their wrath? There are insurance teams you may never want to engage with. If you, for instance, notice that they are slow in responding to inquiries, don’t assume they will change when you become their customer. It’s a “tip of the iceberg” on the kind of treatment you expect.

When choosing an insurance company, pay attention to the details on the returns, their service, and most importantly, get an Affordable Insurance Company with years of experience in the industry.

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