Why the Track Record of Your Insurance Company Is Important

When it comes to buying an insurance policy, one of the most important decisions is identifying the most suitable insurance company. With so many companies in the UAE providing health insurance, choosing a company that is capable of safeguarding your family’s or employees’ wellbeing can be a tough task. Ideally, a company that is reliable, trustworthy and has a good reputation in the market should be chosen.

There are more than 50 companies in the UAE that provide medical insurance. These include both national as well as international companies. Some of the national companies such as Daman, ADNIC and National General Insurance are known for their affordable plans with great benefits, whereas international companies such as Aetna, AXA, Bupa and Metlife Alico provide a consistent level of customer service across the globe. Here are some characteristics in an insurer that should be considered when buying health insurance:

Experience

It is important to check the history of the insurance company before you consider buying the policy. Insurance companies may try to lure in customers with the help of various marketing and advertising gimmicks, but the stability of the company will be determined only after doing some home work about the company’s history. Broadly, one needs to research the number of years for which the company has been in operation as well as the different types of policies it provides. The higher the number of years in operation, the lower the perceived risk of buying from that company. For instance, health insurance companies like AXA Gulf have been in operation for more than 60 years as a result of which it has managed to build trust amongst customers and hospitals within the UAE.

Financial stability

Your relationship with your insurance company may need to last for a long period, especially if you develop a medical condition at some point. There is always some element of risk with regards to the claim payment, which is why it is essential to choose a company that has demonstrated financial stability consistently for several years. An important determinant for this is the rating given to the company. Various independent agencies give ratings to these companies based on factors such as their financial health, service quality, etc. These ratings therefore help the customers in distinguishing between a top insurance company and a mediocre one. The financial stability of an insurance company is also assessed on the basis of the overall profits generated by the company. Also, a company that has been witnessing a constant increase in the overall volume of premiums collected exhibits stability through the continuous growth and contribution that it makes to the overall industry.

Service record

Since your health insurance contract will last at least a year, the quality of service provided by the company to its customers is a major factor when choosing an insurance company. Individuals or companies looking to get insured need to assess the company not only at the time of buying the medical policy, but also after purchasing it. The quality of service provided is a determining factor as insurance policies may be modified upon renewal based on the changes in the health of the policyholder. One way to gauge this is to see how the agents react when inundated with too many questions. You can ascertain the type of service provided by the company based on whether they are attentive and available for resolving your queries on the phone or in person. It is also essential to do thorough research on the number of complaints registered by the customers, and the type of approach used by the company to respond to the negative feedback.

Claim settlement ratio

When deciding on a health insurance plan, you will also need to look at the claim settlement ratio of the company. This is the ratio of the number of claims settled by the company against the overall number of claims filed by policyholders. In simple words, it is the percentage of claims that have been approved by the company versus the percentage of claims that have been rejected or are pending. A company with a higher settlement ratio indicates that the risk of your claim getting rejected is low. One of the main reasons for buying insurance is to receive monetary support at the time of need, which is why it is extremely critical to assess the claim settlement ratio of a company. Ideally, a company that has a claim settlement ratio of 90% or more should be chosen. One of the most common reasons for claims being rejected is the lack of proper documentation. You need to make sure that all the appropriate documents are provided when you submit a reimbursement claim to avoid any settlement issues.

Keeping the above factors in mind and doing your homework is essential when choosing a health insurance company. Ultimately, an ideal company should identify your requirement, suggest a policy accordingly, and have the ability to provide financial aid at the time of need. Fortunately, you can visit www.bayzat.com for the simplest way to find the right medical insurance policy – whether you are a family or company!

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