Posted by / Heather Xiong CPF®️ Insurance Column/ Insurance is a common and effective risk management tool in daily life.In each family's income and expenditure items, although the proportion of insurance varies, it must exist.
In a mature and developed society, insurance can be purchased as big as a car, house, and business; as small as glasses, TV, and trees.
The reason why people spend today's money to avoid future risks is that there are sufficient reasons to believe that losses can be reduced when they actually encounter a claim settlement event in the future.
Based on such "trust", policyholders exchange cash for future promises.But the question is, every company says it can promise, so who should I choose?
Two-sided understanding of a sentence
Usually, the insurance company's product information, or the small print part of the policy, will have such a line.
"The guarantee of this product is backed by the financial strength and claim payment ability of the insurance company."
This sentence sounds like ambiguous.However, interpretations of the same sentence often have very different interpretations due to different positions.
From the subjective point of view of some policyholders, they will think, does this mean that the insurance company has the right to make a ruling?
I don't think anyone will be satisfied with such a "commitment".
From the standpoint of insurance companies, this sentence carries a very heavy weight. It includes the entire industry, the wealth accumulated in the past two hundred years, the sum of credit and other soft and hard power.
The history of many modern insurance companies is usually more than 100 years, or even more than 150 years.These insurers have a credit history of delivering on their insurance promises longer than some modern state regimes.
Therefore, commercial insurance companies further provide a foundation and guarantee for the economic development of modern countries and societies.
Confusion about insurance company rankings
In the process of actual communication with customers, many customers will ask"Which company ranks best? Which company ranks first?"
There is actually no definite answer to this question.
The insured may be surprised by this, is it not a very clear thing to rank one, two or three?
The answer is not so.
Take university rankings for a simple analogy.
The more common US News rankings and Times rankings will list different filtering conditions, and the same school's ranking in different lists may also be very different.
In all fairness, can Princeton, Yale and Harvard really rank one, two or three?
I believe that a student who has received admission letters from these three universities will naturally have a selection standard in his heart that suits his actual situation.
This final decision is by no means in order of ranking, but more on whether the school can help us achieve our long-term goals and whether it can provide added value.
Likewise, insurance companies are ranked by different metrics.
Some are ranked according to market sales, some are ranked according to the asset size of insurance companies, and some are subdivided into a specific type of insurance, ranking in a specific field of insured population.
What insurance companies want to show to policyholders is often their highest ranking.
It can be said,Everyinsurance brand, In a developed society full of various business evaluation agencies, it will definitely be able to get one of the best ranking results.
Therefore, the ranking displayed by the insurance company is only a reference for the insured, but it should never be the only consideration for making a decision.
In the end, we still have to issue from our own actual situation, be goal-oriented, and choose insurance products and design solutions that can truly achieve comprehensive family protection. (End of full text)
(>>>Related reading:Why Credit Ratings for Insurance Companies?How does it benefit us to know about credit ratings?）
