Choosing an insurance company the right way

Today there are 38 insurance companies in Kazakhstan, and each one claims to be the best and most reliable. How do you choose the insurer that is right for you? We offer a few tips to help you make the right choice.

Cheap does not mean best

As a rule, the first thing we are interested in when buying a policy is its price. Naturally, we want to pay less and yet receive as much as possible if something happens. But do not forget: buy cheap, buy twice. It is from clients' money that a company builds the reserves from which compensation is paid. Therefore, an insurer offering an abnormally cheap policy, various bonuses and discounts will most likely be unable to make payouts when an insured event occurs, or will delay them.

Company history

By studying the market and comparing the players, you will get a clear picture and will be able to choose an insurer in an informed way. We recommend starting your "scan" with the company's reputation, how long it has been in business, its stability and its financial indicators, which are published on the website of the National Bank. Of course, you need to know who is at the head of the company, that is, who its shareholder is. One of the most important selection factors should be the insurer's track record on the market. The longer a company has been providing its services, the more competitive it is, since weak, poorly structured and incompetently managed companies are unable to stay on the market for long.

Assessing the service

The service side of the issue is no less important. The company should offer clients additional services, for example, attending the scene of a road accident, having a call center that can be reached around the clock, etc. When signing a contract with an insurance company, you need to clearly understand which risks the insurer covers in the event of illness, damage to property or, say, a road traffic accident. It often happens that we buy a policy for an apartment, and then, when a neighbour floods us, we find out that the property is insured only against fire. In addition, the company should have several branches. It is even better if they are located in different regions. This means, first, that the organisation focuses on its development not just in one city but throughout Kazakhstan, and second, that only an insurer with sound financial resources can afford to open a branch network.

Word of mouth

Insurance is perhaps one of the few markets where it does not hurt to listen to what your friends and acquaintances say about the players. In addition, you should analyse your own experience with insurers, consult specialists and read information on internet forums.

Analysing the company's condition

The National Bank's website contains information on whether an insurer complies with legal requirements. If it shows that the company has already received warnings or, even worse, that its activities have been temporarily suspended, we advise against going to such an insurer. You should also pay attention to the volume of payouts and premium income (premiums are the money we, the clients, pay for a policy). The higher the volume of insurance premiums, the better, as this indicates that the company takes a sufficiently balanced approach to its work. The volume of payouts may show how conscientiously the insurer meets its obligations, that is, compensates injured parties under its policies.

Where to conclude a contract?

An insurance contract can be concluded at the company's own office or through an insurance agent. We recommend buying a policy at the office: there they can explain the terms of the contract to you in detail and show you the licence to operate and other documents you are interested in. An insurance agent, as a rule, tries to push you towards the insurer that pays him more. Today, even though all companies are supposed to pay the same rate, cases of fraud on the part of agents cannot be ruled out.

If you made the wrong choice

An unscrupulous company may delay payment or assess the damage much lower in order to pay less. All this will cost you nerves and time. In that case, you can seek help from a free independent arbiter — the insurance ombudsman — or file a complaint directly with the National Bank.