by tcope » Wed Sep 17, 2008 02:48 am
I remember at least one person mentioning how much the insurance industry made last year and how this was a record amount. I pointed out that they did not consider that insurance is not like banking... those profits can _easily_ be lost.
Well, take a look at what a beating that most carriers are taking in the Midwest and the south. Billions of dollars are being spent on losses. I know the company I work for is paying more in those areas then they collected in premiums.
Then look at a company like AIG. Granted, mental defects were at the reigns but this is just another example of how insurance companies _do_ loose money and go belly up. Who would have questioned an insurance company stability or thought an insurance company as large as AIG could be in trouble. Also, look at the repercussions of that news.
Well, take a look at what a beating that most carriers are taking in the Midwest and the south. Billions of dollars are being spent on losses. I know the company I work for is paying more in those areas then they collected in premiums.
Then look at a company like AIG. Granted, mental defects were at the reigns but this is just another example of how insurance companies _do_ loose money and go belly up. Who would have questioned an insurance company stability or thought an insurance company as large as AIG could be in trouble. Also, look at the repercussions of that news.
Posted: Wed Sep 17, 2008 10:13 am Post Subject:
Hi all, in my opinion the best way to evaluate insurance company stability is by judging it through the following steps-
* Read the respective company policies through their websites
* Call up the customer support & inquire about agent
* Ask the customer support to mail you stuffs that are inexplicable over the phone
Hope once you have a better idea of the different companies & agents it will be an easier task for you to handle such issues. Thanks, Fatman
Posted: Wed Sep 17, 2008 10:27 am Post Subject:
You may always try up the following websites in order to know the insurance company stability -
A. M. Best, Insurance.com
A. M. Best is certainly a good source of comparing the financial strength of numerous insurance companies. With insurance.com too you'd be able to check out the benefits of different auto, home, health & life policies at a glance.
Thanks and regards, Roddick
Posted: Wed Sep 17, 2008 10:48 am Post Subject:
Alot of carriers are in trouble now, I have never in all my years seen soooooooo many carriers laying off employees in IT, claims, everywhere...it's a very very scary time, and this is from some of the largest carriers....it's very un-nerving.
Posted: Wed Sep 17, 2008 10:58 am Post Subject:
Hi...if you'd check out the tools that come from the different financial raters as well as the industry associations (be it with the IMSA or the DOI of your state) then I'm sure you'd get a proper evaluation of the companies. Fatman
Posted: Wed Sep 17, 2008 02:00 pm Post Subject:
Hi,
The first thing that you'd need to check is whether your company has the legal authority to operate inside your state or within the city that you are residing in. This information could be easily verified with the State DOI and comes handy in determining the insurance company stability . I've noticed that every state has its own unique protocol to deal with insurance carriers & handle insurance complaints accordingly. Keep that in mind too!
Regards, Roddick
Posted: Wed Sep 17, 2008 02:06 pm Post Subject:
I've noticed that every state has its own unique protocol to deal with insurance carriers & handle insurance complaints accordingly.
Hi Roddick, please remember that a compliant would only signify that the customer was not satisfied but it would never symbolize any fault on the part of the carrier. Fatman
Posted: Wed Sep 17, 2008 02:12 pm Post Subject:
But Fatman..I'm sure you'd agree that more of complaints over the years & that too if it is recurring in nature would automatically signify that the company has not been able to tackle their problems in that respective area of operation. Once too many complaints are being lodged against a particular insurer, it is easier for a policy applicant to check with the state DOI & find out the real reason. Roddick
Posted: Wed Sep 17, 2008 02:19 pm Post Subject:
Roddick, we'd always have the right to differ with each other's experiences..right! :)
Now, I'd love to speak more on how to assess an insurance carrier's strength in terms of its finances. I believe there are 5 rating firms that offer such ratings-
* Standard and Poor's
* Fitch Ratings
* A. M. Best
* Moody's Investors
* The street.com ratings (I think its the same as the former Weiss Ratings)
I'm sure you guys would add more to this list if there are more names to be attached.
Fatman
Posted: Wed Sep 17, 2008 02:26 pm Post Subject:
Yeah, that's quite right Fatman!
These ratings are quite powerful in one respect, that they would reflect the financial outcomes associated with a carrier's future. A low-rating would automatically signify a shortfall in terms of the carrier's assets or reserves. As you all know, how this could influence the claims payment process & reduce the life span of the carrier in the long run. Hope, you all would count on that too!
Now, I'd be signing off for the time..
Roddick
Posted: Wed Sep 17, 2008 02:39 pm Post Subject:
As you all know, how this could influence the claims payment process & reduce the life span of the carrier in the long run.
It becomes absolutely difficult for a financially unstable company to meet claims. The ultimate outcome for such a carrier would be that it might need to sell off its identity or wrap up!
That's the reason why it becomes all the more important for a consumer to keep on checking his carrier's ratings from time to time. Ratings may vary owing to the different circumstances & may vary anytime. There could be a good number of reasons contributing to such differences in ratings-
* Poor decision-making regarding investments
* Unforeseen losses
* Merging of companies
* Possibilities of future absorptions
But, I'm quite sure that people with strong insights would commit less of such mistakes. Fatman
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