Kathmandu. Buying insurance is a necessity for every person. Insurance is an important part of financial planning.
Buying insurance can avoid unexpected financial difficulties. Therefore, everyone should buy insurance. Life insurance, in particular, is important. However, many people find it difficult to decide which insurance company to buy when it comes to buying life insurance.
Many people struggle to decide which insurance company is better and which insurance to buy from. Therefore, it is important to pay attention to the following in order to easily determine which company is best for insurance.
Company Persistence Ratio
Before buying insurance from any company, its dependency ratio should be checked. This ratio is a percentage. This indicates how many insured continue to pay their premiums on time and maintain their policies. Continuous premium payment of the insured and continuing the policy indicates that the company is providing better service to the customer and the customer is satisfied with the company.
solvency ratio
Before buying insurance from any company, you should check the solvency ratio of the company. This ratio indicates whether the insurance company has the financial capacity to pay all its claims on time. This ratio also reflects the long-term stability and strength of the company. A good solvency ratio indicates that the company will pay all its claims without delay.
Claim Payment Ratio
Before buying insurance from any company, it is important to check the claim payout ratio of the company. The claim payment ratio refers to how much of the total claim the company receives. A higher claim payment ratio indicates that the company is paying more of its claims.
Company expense ratio
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Before buying insurance, you should check the expense ratio of the company. The expense ratio indicates what percentage of the company’s total premium income it spends on salaries, marketing, agent commissions, office expenses, and other administrative tasks. A low expense ratio is considered a good sign. This indicates that the company has more funds to pay the claim and provide the benefits of the policy.
Grievance Redressal Ratio
The grievance redressal ratio indicates the number of complaints filed by a company’s customers and how efficiently the company resolves those complaints. This ratio indicates how many customers are experiencing problems with the company’s services and how quickly and effectively the company resolves these problems.
