Insurance Company

An insurance company is a business entity certified for the purpose of selling and implementing insurance policies.

An insurance company can handle any and all types of insurance provided they are certified to do so. Some insurance companies specialize in certain types of insurance while others offer a wide variety of insurance. Insurance companies protect organizations, individuals and businesses from financial loss by assuming billions of dollars worth of risk each year.

Insurance company underwriters determine if insurance is provided and if so under what terms and conditions. The underwriters identify and calculate the risk of loss from policy holders, establish who receives a policy, determine the appropriate premium and write policies that cover the risk. An insurance company has to find the right balance of risk to avoid losing customers for underwriting of policies that are too conservative or from taking a heavy handed hit and paying excessive claims if they underwrite to liberal.

No matter what your insurance needs, choosing the right insurance company is an important decision. No two insurance companies are alike and not all insurance companies have the insurance you need or policies to cover those needs. An important feature to consider when choosing an insurance company is customer service. Once the policy is in place and you have questions or even a claim, is there a person to call that will provide the necessary answers or the help needed to fill out a claim or navigate your way through the claim process. Always check to see if there is a complaint history and pay attention to the number of unsolved complaints. Every company will be subject to complaints whether they are founded or not, but the way they are handled and resolved is a matter of importance.

Always compare at least three insurance companies before choosing the one to do business with. Ask family and friends who they are insured with. Personal references are usually the best indicator of a good choice. Check out your insurance company of choice with the Better Business Bureau. A good rating from the BBB usually means they are a reputable company to deal with and get high marks when it comes to resolving complaints and issues that arise. Always compare costs and coverage and make sure you are comparing apples to apples and not apples to fruit salad

A mutual insurance company is not owned by shareholders, but by its policy holders. The ownership can be restricted to a certain group of policy holders or to all of its policy holders. Ownership rights also include voting rights. All mutual insurance company owners are included in the election of the board of directors. Any surplus funds are distributed to policy holders.

Benjamin Franklin established the first mutual insurance company in 1752 when he founded the Philadelphia Contribution ship for the Insurance of houses from Loss by Fire. The idea came from the mutual insurance concept that originated in England 60 years prior to Franklins establishment of mutual insurance in the newly forming United States.