Canadian life insurance companies urged to reduce risks

Posted by De_Trainer | Posted in

The Canadian insurance companies have advertised segregated funds as an investment vehicle that is similar to mutual funds and one with a life insurance security. It may be mentioned here that segregated fund is an investment type and is under the administration of Canadian insurance companies and are made available in the form variable or individual life insurance contracts.

The Office of the Superintendent of Financial Institutions or OSFI has urged life insurance companies in Canada to slow down the sale of segregated funds as they are associated with a number of risks. Quoting the OSFI head Julie Dickson “Selling more segregated fund policies does not reduce risk, it actually increases it, because when the markets decline all segregated fund policies get hit at the same time”.

The head of OSFI suggested that the Canadian insurance companies selling life insurance policies and dealing with segregated funds should take few steps to reduce the risk associated with these funds. The measures suggested by her include “changes to product features, slowing growth in the product line, making sure that valuation assumption are consistent with the intent of capital rules, and hedging or other types of risk mitigation, including reinsurance”.

The value of the segregated funds is influenced by the prevailing market conditions that include the “value of underlying securities”. This makes the segregated fund risky and is more susceptible to a market collapse. The head of the Office of the Superintendent of Financial Institutions stated that there are 2 risks associated with the segregated funds. The first includes the liabilities that depend on the movement of the market and the second one includes funding the liabilities.

The segregated funds are also known as “mutual funds with an insurance policy wrapper”. They are usually sold by insurance representatives having license for the same. Segregated funds combine the benefit of a mutual fund along with life insurance coverage.

Contributed by Ampminsure Community Member.

How To Plan And Choose Home Insurance

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With life being so uncertain today, insurance is like the best way to prepare you for good and bad things ahead in life. Insurance gives you a sense of security as you know that there is someone to help you in your bad times. Like all insurances, home insurance is also very important as it protects your house from any kind of damage, theft and other accidents. It's like a monthly savings so that you can use them in future when you really need them. Just the difference is that you are giving this sum to a company that in return will cover your expenses when there is some kind of loss.

There are many companies in market that are selling some very good insurance policies, you can approach anyone and make a deal. You can also go online, search quotes from various companies, compare the rates, set a meeting with the company that you think is affordable, negotiate your deal, add all the terms and conditions and your deal is set. It is as simple as it looks with all quotes available online. You can choose the company that offers you best deals for your home insurance through internet, without bugging calls from the agents. Also you can do the job as and when it suits you, there is no pressure on you.

Make sure the company you go for is reliable, has a reputation in market and most importantly, it covers all your needs. All your terms and conditions should be agreed by the company within of course limits of its policy. They might not cover certain things that you are asking for, so policy should be by agreement of both the parties.

People buy home insurance to protect their house but this doesn't mean that you won't take safety measures from your side. The premium of your policy is low if your house is fully protected and there are less chances of danger. If all the lock and door systems of your house are perfect and you have a security alarm installed, you happen to get some discounts and your policy becomes more affordable. But then the locality of your house is a very important factor. This clause is defined by the government of the state and is not changeable and hence it can make a difference in terms of your home insurance. So take your time and plan your policy nicely.

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Purchasing Health Insurance: Basic Facts You Need To Know

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With the costs of medicines and hospitalization increasing, health care has become extremely expensive for most people to tolerate. As important as it is to buy health insurance, it is also important to save money, especially in these times of economic difficulties. The only way to save money and to get a good deal is by researching. Before committing to a specific health care insurance, one must study the variety of health plans that are being offered by conducting some online research.

It can be overwhelming to research and not understand a word of what is being read. That is why prior to researching, one must learn there are two different types of health insurances. One type is called indemnity plans, also known as reimbursement plans, and the second type is the managed care plans, which include health maintenance organizations, preferred provider organizations, and point of service plans.

With indemnity plans, offered by most traditional insurers, a person is allowed to choose their own doctor and is entitled to either completely pay for the medical expenses, pay part of it, or up to a specified amount per day for a specific period of time. Then the medical expenses are reimbursed, however, in some cases the reimbursement may be limited.

The managed care plans provide wider coverage and make an arrangement between the insurer and a selected network of health care providers like doctors, hospitals etc. Policyholders are offered major financial motivation to use the providers in that network. However, a health maintenance organization may require that a primary care physician in the network will coordinate the entire health care of the patient and refer to specialists, also in the network.


One must be aware of what managed care plans consists of and their differences. Health maintenance organizations (HMOs) are prepaid policies; members pay a monthly fee despite of how much medical care is needed in a specific month. By being a member, this grants you and your family complete care including doctors' visits, hospital stays, emergency care, surgery, lab tests, x-rays and therapy.

Preferred provider organizations (PPOs) are made up of doctors and/or hospitals and the insurer pays for services as they are rendered and then it is reimbursed. With point of service plans (POS) one pays no deductible and usually only a minimal co-payment when they use a healthcare provider within their network.

POS plans are a mix between an HMO and a PPO where you have a primary care doctor and you get most of your health care from but you also have the option to choose to see doctors outside of the network at your own cost.

One should also examine the type of coverage offered by each health insurance organization and understand that it may vary. If one were to be hospitalized, hospital expense insurance pays for the room, board and incidental service costs. Surgical expense insurance covers surgeon's fees and related costs associated with surgery. Physicians' expense insurance pays for visits to a doctor's office or for a doctor's hospital visits.

Major health insurances offer a very broad coverage with maximum benefits that are designed to protect the customer from catastrophic illness or injury. While buying health insurance like these, one must check carefully and read between the lines of the policy to see if the additional benefits include prescription drugs, preventive care, mental health benefits, maternity care, vision care and others.

There may also be some expenses besides the monthly premium expenses that are not covered by some health care insurance organizations which can be really heavy especially if there are small children or members who visit the doctor frequently. Another expense one should be aware about is a co-payment. A co-payment is an amount one has to pay every time a health insurance provider is visited. There are some deductibles which are amounts to be paid towards medical expenses before the insurance company begins to pay the claims. There can be coinsurance also where the percentage on the medical costs has to be borne.

Health insurance is usually offered through a group plan such as at work or through another group affiliation like a club or a school. However, one can also purchase an individual health insurance. Before buying any health insurance, one should get online and find information, compare rates, review plans and options offered by each company and select the one that appeals the most. The best health insurance plan is the one which has the greatest flexibility and the most benefits at the lowest costs. One needs to shop around and get the best quotes before committing to a specific insurance. One must also make sure the reputation of the health insurance broker is good and in case of doubt the state's department of insurance gives the full information.

Sandra Cohen

Tips on Getting an Insurance Estimate

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You can easily get an insurance estimate in two different ways. Initially you can obtain an approximate estimate. The estimation provided will be calculated as a result of several non-identifiable factors: age, location, car make and model, house square footage, and others. This may be sufficient for you to see if you'd like to have a formal quotation from that particular corporation.

Find out your credit score beforehand. Your credit score is used by many, but not all, insurance companies. Next, a quote just for you can be obtained. For this you must be prepared to provide some type of personal identification. Personal data such as your social security number, physical address, automobile information, etc. This will permit you to see which insurance company will actually offer you with the most excellent rate. Most insurance companies are happy to provide quotes to you (or those agents that work for the firm). Independent agents have contracts for many different companies to sell insurance. One agent may be able to figure out which company offers the best deal by weeding through the comparisons for you. Independent Insurance Agents & Brokers of America are one source of finding an independent insurance agent. You can get more knowledge by internet searching. Looking for an independent agent? Look no further than the yellow pages.

Call or check online for an estimate. Based on how familiar you are with using the web, you could save yourself time and trouble. There are two options. First, you can look through all the websites one by one or second, you use a website that does the comparisons for you. Utilize a method with which you are comfortable. No matter what strategy you opt to use, be certain you're not comparing apples to oranges. Be sure you use the same coverage and deductibles from each company if you are seeking insurance on a car. Read the details of the estimates carefully. Comparisons aren't very useful if it isn't nearly identical coverage.

Before that you must search about the insurance company's customer service details. While the original service is significant, perhaps more critical is what could occur in case you need to file a claim. The simplicity of stating your opinion on the Internet these days, seeking customer service reviews of a company of your choice may result in a lot of information.

Don't forget that even though it's so simple to express your opinion these days, you may find out that some people with personal grudges may have a bigger impact than before. You need to study what's out there, yet don't believe every far-fetched claim you hear.

Tiffany Provost

Looking For Cheap Courier Insurance? Where to Find It

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It is important for courier business owners to have the right kind of insurance, so that they are covered in the case of accidents or loss of cargo. This is not the same cover you would get if you were a motor car owner, or a truck owner, but is a different and specialised insurance type that covers goods in transit, and the vehicles used to deliver these. Since you are responsible for the transportation of goods that belong to other people, you need a special cover for your vehicle.

The best way to get cheap courier insurance is to do your research before you contact companies, and find out what kind of insurance cover you need so that when you do meet companies you are able to put across your needs effectively. It is also a good idea to get in touch with online companies so you can compare rates with these as well. Generally, online companies can offer lower rates as they have fewer costs to cover, so be aware of this before you compare with local companies.

When you begin searching for courier insurance you will notice that there are many different kinds of covers available to you. This makes it increasingly important that you get the right cover for your needs and requirements, therefore make sure that you buy a cover that best suits your businesses needs. Haulage insurance, for example, will only cover the goods that belong to other people, whereas "goods in transit" will also cover your personal belongings.

There are also discounts that are available to you when you buy courier insurance. Some companies will offer discounts to new customers to attract them, and some will offer discounts to those customers that have a good driving record. Make sure you are aware of the various discounts that are being offered in the market so you can benefit from them.

Another way to reduce costs, if you have a large fleet of vehicles, is to get them all covered under a fleet insurance policy. This will be cheaper for you than getting every individual vehicle covered separately. Another important factor to consider is the size of your business, and the bargaining power this will give you with the company. The larger the business, the more you will be able to bargain this to get lower rates offered to you.


Be on the lookout for extremely low rates being offered to you, as these could essentially be policies that offer you less coverage, but the fine print confuses you into thinking you have full coverage, only to realise you are not covered after you have filed a claim. It is best to get an agent to help you wade through the different policies and choose one that is best for you.

By using these tips, you can make sure you are properly covered and have bought the cheapest and best insurance policy for your business needs. Being educated about insurance policies is the best way to make a good choice.

Paul Headley

General Type Insurances

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Insurance basically guarantees a sum of money to the owner of a particular asset, where the owner whether an individual or a company is referred to as the "Insured". The organization guaranteeing this money is the "Insurer". The Insured pays a nominal amount to the Insurer which is known as the "Insurance Premium". Insurance is broadly divided into two:

Life Insurance
Life Insurance is a contract by which the Insurer makes a certain payment to the Insured on the occurrence of a certain event like death or after a fixed duration of time. The various types of Life insurances prevalent in the Indian markets are:
1. Term Insurance - The Insured is covered for a fixed duration of time by the Insurer. In case of death of the Insured, the Insurer is liable to pay the money to the person nominated by the Insured. However if the Insured survives the duration of the insurance cover than the Insurer is not liable for any payment.

2. Permanent Life Insurance - In this case the Insured is covered either for his or her entire life or for a fixed period of time. The Insurer is liable to pay the person nominated the money due in the event of the death of the Insured. In case the Insured survives the duration than the payment still has to be made to the Insured. The Permanent Life Insurance has been modified by organizations to come up with the following products:

* Children's Policies
* Mortgage Redemption Policies
* Loan Cover Policies
* Group Life Insurances
* Participating and Non Participating Policies
* Endowment Policies
* Money Back Policies
* Annuity or Pension Policies
* Unit Linked Policies

General Insurance
General Insurance on the other hand covers almost anything and everything ranging from vehicles to household goods and is also commonly known as Non Life Insurance. The various types of insurance provided are as follows:

* Motor Insurance
* Small establishment / Shop Package Policies
* Travel Insurance
* Marine Insurance
* Professional Indemnity Policies
* Home Insurance
* Fire Insurance
* Householder's Package Policies
* Personal Accident Insurance
* Mediclaim Insurance





Choose Insurance

Posted by De_Trainer | Posted in

Choose insurance, mainly choose life insurance, is a production there nearly everyone should own, but many people do not. Thither are lot of live who don't-know even want to think or discuss it because it is associated with death.

1. See why live choosing insurance coverage. People do tonight to protect debts (perhaps a mortgage), class costs or schoolhouse fees (in the event of a parent passing away), to protect a business (against the loss of a vital partner), or as part of their overall estate planning. Almost everyone in company hit any family, assets or responsibilities inevitably some life insurance coverage.

2. Learn the two staple setter of insurance: term and permanent.

Term insurance is irregular and just lasts for a preset preset 'term' at the outset.
Tonight may be for a suddenly menstruum of sentence for a specific purpose or potentially twenty or thirty years. If you happen off a few years later coverage has ended, there will be no payout.

Permanent insurance wish price More up front, but is intended to finish a lifetime ensuring that someone receives a benefit from the policy. Thither are another setter of lasting insurance, whole life, universal life and variable universal life.

3. Refer a pro advisor. Southey are enlightened in the another line available, and can help you determine what type of coverage you need for your particular situation. You power lack to think a broker, person who works with a range of companies, rather than an advisor who deals with just one company. Brokers are sovereign and hold a often broader marketplace perspective.

In Canada, the end gain payout occasionally a life insurance insurance is tax-free[1], whereas if the money were to flow through an estate it would be taxable. Tonight improvised a choose insurance insurance a useful way to pass on an inheirance.

Many live require the smallest price option and purchase the bare minimum of cover. Seem to be full covered quite more just partially so...

What Constitutes Business Car Insurance?

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Personal car insurance and business car insurance are necessities in our daily life. Many differences align the two and the price varies as well. When it comes to personal and business car insurance, there are some distinct differences.

If you are not looking to increase your rates, you will first need to get the driving record of any applicant that applies to your business. This protects you as the owner. You do not want to hire someone for the position only to find out their driving record is less than perfect. In fact, you might not be able to add them on to your policy at all. Then, this employee you hired only becomes a drain on production. Unlike personal car insurance policies where you are only responsible for your household; business policies are more risk and the employees do not always have your best interest in their thoughts.

The flexibility of the business policy far outweighs the personal car insurance policy. This is because you have different circumstances that arise in business. A business usually deals with expensive items and carries certain items. During this time, they are responsible for it. If something happens, they have to pay up. This is business activity and not personal. A business policy is necessary.

Keeping track of gas and miles seems like a daunting task, however, it is a business necessity. It is very important that you distinguish which miles were used for personal use and which were used for business use. This helps on all fronts and is often tracked using a computer based model.

Keeping business use and personal use separate is always the recommended path. Most people find that their business use is very limited and do not see the reason why they should take out a separate business insurance policy. Although this may be logical, you need to make sure your bases are covered. This means that if you choose to use your personal car insurance policy for business use that is limited, you will need to inform your car insurance agent of this change so they can adjust your policy to cover it. They can find cause to deny your claim if you are found to be using your vehicle for business purposes that were not defined in your policy.

Realtors, Regional Directors and salesman all fall into the classification of often forgetting to note they use their car for business use. This is because some people have a road block do to the fact they do it every day. Any time a person drives to a meeting, property or a house or business for a potential sale, they are using their car for purposes that constitute business. This is the type that needs to be noted under a personal policy.

Never be challenged later down the road with not having adequate coverage or being denied a claim because you did not inform the insurance company of your situation. Talk to an agent and get the best deal. www.carinsurancesa.co.za

Management Consultant Insurance and Liability Protection

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If you're in the management consulting business, you probably have clients that require you to carry some level of insurance. Maybe you run a small firm with a few employees, or maybe you're an independent freelancer. Either way, you might wonder if you'll ever actually use all that coverage.

If your client says it's necessary, you will need to obtain professional liability insurance if you want to secure the job. The good news is that getting the required insurance coverage can be both affordable and good for your business.

Typically, companies want their management consultants to carry some or all of the following three types of coverage:

General liability insurance

General liability insurance covers businesses in the event of an on-site injury or damage to company property. Management consultants often wonder whether they really need this type of coverage. After all, what's the likelihood that someone giving a presentation or attending a meeting will damage a client's property or hurt anyone? Is there really a risk of liability for management consultants?

The fact is, client companies often require all of their vendors who may come on-site - from electricians to delivery personnel to management consultants - to prove they carry general liability insurance. In some cases, the mandate comes from the client's investors, who seek to reduce the company's risk of financial losses from lawsuits. And of course, accidents do happen, so there is as much risk of liability for management consultants as for any other office visitor.

If you have your own management consulting office, general liability insurance will protect you in the event of an accident or injury on the premises. If a client visits your office on a rainy day and slips and falls in the entryway, your general liability insurance will cover any related medical or legal costs - and possibly save your client relationship. And that's one invaluable reason why insurance for management consultants is good for your business.

Professional liability insurance

Professional liability insurance, also known as errors and omissions or E&O insurance, is essentially malpractice insurance for management consultants. It covers you for errors and omissions that you or your employees make on the job. There's a simple reason that clients require E&O insurance for management consultants: They know that people make mistakes.

Your client's greatest risk in bringing you in as a management consultant is liability -- the fact that your mistakes could spark a lawsuit or financial loss. For example, let's say you have revamped a company's budgeting process, but made a critical miscalculation in the new system that results in big problems when the budget is reconciled with actual expenses later in the year. Your client can claim that any resulting financial loss is due to a management consultant error or omission, and will expect you to compensate the company.

Having professional liability or E&O insurance for management consultants is a good idea. Without it, you could end up paying exorbitant legal defense costs if your client makes a claim against you. A misunderstanding is often all it takes to be served with a lawsuit. Once a client alleges that you were negligent and communication breaks down, your legal expenses start to grow. E&O insurance gives you peace of mind that should things go wrong, you're covered.

Workers' compensation insurance

Some states require workers' compensation insurance, while others do not. If your client is based in a state that requires it, your management consulting firm will likely be asked to carry it, even if your own home state does not require it.

That's because, in some states, if you're injured while on the job, your client must cover you with its own workers' compensation policy. Also, in some states, your client's insurance carrier will require the client to cover all contractors that don't have their own proof of coverage. Both scenarios increase your clients' premiums, so they often require workers' comp insurance of management consultants as well as other contractors.

Workers' compensation insurance covers medical expenses as well as disability and compensation in the event of on-the-job injuries. If you're a solo practitioner with your own health insurance, workers' compensation insurance may not be necessary - but your client may still require it if you want to get the work.

If your management consulting business has employees, protecting them with workers' compensation insurance just makes good business sense. From carpal tunnel syndrome to a slippery bathroom floor, even the smallest on-the-job hazards could result in an injury that could take them off the job. Workers' compensation insurance ensures that your employees are taken care of and saves your company from paying for their ongoing care. www.businessinsurancenow.com/professional_liability.aspx

Building Contractors - 5 Tips For Getting the Best Insurance Policy Audit Results

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All building contractors working in North Carolina who carry either a NC general liability insurance policy or a NC workers compensation insurance policy, or both, probably know that these insurance policies are subject to an annual audit. What few contractors understand is that they have the power to stack the deck in their favor when it comes to that audit. And since some of the audit process is subjective, this can mean money in your pocket if you are a building contractor. Here are 5 tips that will put you on the road to more successful insurance audits.

Let me start by emphasizing that insurance auditors are people just like any other. If you grease the path for them and make their job easier, then they are much more likely to cut you some slack in the audit process and this can end up saving you a lot of money. So, what are those 5 tips?

Tip # 1 - Have Those Insurance Certificates Ready. I just can't preach this enough. Do not allow any subcontractors on to your job site until they have provided you with a current certificate of insurance. And more than that, be sure that the limits on their general liability insurance policy are at least equal to your own policy limits. And if you have a workers compensation policy, make sure that their certificate shows that they have one as well. Last of all, check the policy dates on the certificate to be sure that they are current and active. If any policies will run out while these subs are still on the job, make sure that you also obtain an updated certificate. Put copies of all of these certs in your audit file. If the auditor shows up at your office and you don't have your certs ready, he will charge you for the subcontractor payroll and leave it up to you to fix it later. And usually, fixing it later takes a lot more of your time.

Tip #2 - Take Some Time To Study Your Classifications. First of all, take the time with your agent to understand all of the classifications on your general liability insurance policy and your workers compensation insurance policy. Make sure that you understand the nuances of each class code and that your policy is set up accurately. If you are going to fudge the gray area between two similar classifications, understand that you might not get it past the auditor and you should have funds ready should you fail.

Tip #3 - Have The Audit Done and Ready To Hand Over. Once you have done your homework on your classifications, set up a spreadsheet to dump the payroll for each employee each week into the correct classification. You will want to keep a spreadsheet for both the workers compensation and the general liability policies. If you have done this correctly, you will be able to hand that spreadsheet over to the auditor and essentially all of the auditor's work is done. This is more likely to keep them from digging around in your books to find new problems to share with the underwriters that can cost you in increased premiums.

Tip #4 - Keep The Overtime Payroll Separate. The NC workers compensation insurance policy allows you to avoid paying premiums on the extra overtime pay. But, to keep from paying work comp rates on this payroll, you must have it segregated. I suggest that you add a column on the work comp spreadsheet that you are keeping to show the amount of payroll that is overtime bonus and deduct it from the total payroll for each classification.

Tip #5 - Always Schedule the Audit for Friday Afternoons. This one may sound a little goofy but it works. If the auditor shows up at your office on Friday afternoon, and you can put all the information in his hands with up to date spreadsheets and copies of all subcontractor certificates, then he is more likely to accept your figures and get on home for the weekend. The less time he spends digging around in your books and your operations, the less likely he is to find a surprise that the underwriter doesn't like which means higher insurance costs for you.

Most building contractors have a vague idea of when their audit is coming up and some even have a general idea of whether they should be expecting a refund or an additional premium due after the audit. But those that prepare carefully for the audit process, can turn it to their advantage to reduce their overall insurance costs and have their own cross check against the insurance company's audit report. Don't let the insurance company sweep you along; be actively engaged in the audit process by being prepared and proactive. In the long run, this will save you money on your insurance costs.

www.thecontractorshelper.com

Surety Bond Information

Posted by De_Trainer | Posted in

Finding surety bond information is almost as hard as finding surety markets.

I want to contribute to the community by helping businesses as well as consumers to find easy to read surety information. Let's start with the basics, what is a surety bond?

A surety bond is a three part contract. The principal which is you, the obligee the entity requiring the bond, and the surety the one insuring the principal's obligations. A surety bond is in place to protect the obligee from what is drafted in the bond form. A bond can protect the obligee for payments, laws, contractual obligations and much more. Normally bonds are required to safeguard the public from dishonest acts by the principal.

Who needs bonds?

The majority of bonds that are required are for businesses that are highly regulated by the state or federal government such as a contractor, car dealer even mortgage brokers. These bonds are needed in order to obtain a license by the state. If the business cannot obtain bonding the state will not grant them their license.

What happens if you get a bond claim?

If you get a claim on your surety bond the surety will seek legal action to collect payment for the claim.

How to underwrite the bond.

Since you are applying for an unsecured loan. The surety will evaluate your credit, personal financials as well as your experience and business financials.

How much does the bond costs?

The cost is being different for each surety, bond type, state and credit rating. The cost for can be anywhere between 1% to 25% all depending on your scenario.
www.suretybondblog.com

Debunking Surety Bond Myths

Posted by De_Trainer | Posted in

I would like to write about some surety bond falsehoods that perk up their ugly heads from time to time.

Surety Bond Myth one:

I need two bonds, one for each state I am operating in. A broker told me that I could get a discount if I buy two bonds from them. This is not true what so ever, the surety would have more exposure and generally the rate can go up. When a broker tells you this they are probably charging a broker fee and are reducing the fee on the second bond. Now if the bond for the other state has a lower liability and the surety company has a lower filed rate it may be true. This is not the case 90% of the time.

A way to get a lower rate for your surety bond is if you buy your bond for multiple years than you would receive a discount for the additional years.

Surety Bond Myth two:

The bank told me that if I get a bond they would loan me the money The answer in 99% of the time is no. If a bank won't lend you the money you probably don't qualify for the loan. If you can't qualify for the loan you probably can't qualify for the surety bond. Now I am not telling you not to try to get a bond for a loan because you maybe one out of a million that may get it. The likely hood of getting it is slim to none. The surety a few years ago did do financial guarantee bonds, but the fall of Enron and a few other companies caused many sureties to go out of business. Since the fall of Enron surety companies have stopped securing loans.

Surety Bond Myth three:

The broker told me that they would not run credit. Unless it's a notary bond or maybe a defective title bond the surety is going to run credit. 99% of the time the surety will perform and review your credit. If you wanted a loan to extend credit from the bank wouldn't they run your credit? The same philosophy goes for the surety because they are extending a form of credit too.

Surety Bond Myth four:

I was told I can use this bond for every state. If you are referring to a state bond this is not true. Each state has their own bond form and surety bond regulations. If it is a for a federal bond like an ICC broker bond which is a federal bond then you could yes this for each state. Keep in mind just because you have a federal bond does not mean that the state does not require you to have a bond too.

Surety bond Myth five:

If I just get the bond the government will give me my license. The government will not let you get your license until you get the bond, but that does not mean that they will give you your license. You still must meet all of the obligee's requirements first. That includes a bond and other requirements such as zoning, background checks and sometimes educational requirements. www.integritybonds.com/surety-bond.html

Small Business Liability Insurance - Protecting Your Assets

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When you own and operate a small business, you need to be responsible and accountable for it. You may be operating it with utmost care and give your employees and your customers the best quality and services but some will still see it as you're doing something wrong.

It is only practical to get small business liability insurance in order for you to be protected just in case something you don't want to happen actually happens. By learning what all successful business entrepreneurs are aware of, you get to protect your business too.

One of the most often asked question is "who needs small business liability insurance?" To give you a background, 78% of American businesses are structured through some kind of partnership or sole proprietorship. The remaining percentage means that these are the small businesses.

The owners of these businesses must have some kind of ownership to protect their enterprises and to make these less risky as possible. The liabilities of any business are constantly challenging the business owner so he must be smart and have small business liability insurance.

There is an ongoing misconception on limited liability companies or incorporated companies. This is that the business owner is protected from it or personal insurance. This is not usually the case.

The business owner can be personally liable if he has signed a guarantee for the loan, injured someone first hand, have acted illegally or irresponsibly, or does not operate the business as an entity which is supposed to be separate.

So now that business owners are interested about getting small business insurance, they need to know exactly what it is. Well, for one, it protects the small business just in case there is lawsuit for property damages or personal injuries.

This will cover the damages and the legal costs. The small business liability insurance depends on the kind of business needs that the company provides. It can also be purchased in different forms.

When buying small business liability insurance, the owner must know the kinds that are available out there. Here are two examples. There's the General Liability Insurance. This is the kind of business liability insurance that mainly covers and protects the business from advertising claims, property damages, and injury claims. This is generally known as the CGL or the Commercial General Liability.

The next is the Professional Liability Insurance. This is for business owners who provide services that have to be considered in order for these to be protected against negligence, errors, malpractice, and omissions. It depends on which industry the business is in. www.small-business-liability-insurance.net.

Energy Performance Certificate

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From 1 October 2008 it became compulsory that all commercial buildings with a floor area over 50m2 require an Energy Performance Certificate (EPC) for sale, letting, change in the buildings purpose or when constructed.

Not dissimilar to the domestic Home Information Pack (HIP), the legislation requires buildings to have an Energy Performance Certificate (EPC), which details the potential energy efficiency of the property.

The EPC is intended to highlight the amount of energy it is estimated to meet the different energy needs associated with its standard use, so the buyer or tenant can make an informed judgement before the transaction is made.

The EPC takes into account the buildings fabric and services (heating, cooling, hot water, ventilation and lighting) and lasts for 10 years. It does not have to be reissued until then, unless major modifications are made to the property which will affect its energy consumption. The energy performance regulations have been implemented to help combat the increasing effect that property has on carbon emissions into the atmosphere, which currently stands at a staggering 52% of all emissions.

In order to obtain an EPC, a site survey needs to be carried out by an accredited Energy Assessor or approved Data Collector. They will look at a number of key elements such as the buildings fabric, heating, ventilation, air conditioning, lighting efficiencies and control of these elements.

After a short period of time spent on site the certificate takes around 20 days to come through. However this is subject to the receipt of necessary information and is depending on the size and complexity of the building.

As of the 4th January 2009 additional legislation also now affects the person who controls a property that has air conditioning (over 250kW output), which requires a five yearly energy inspection report.

Non compliance will hinder any transaction (buying or selling) and could lead to actions or fines being imposed by Trading Standards of up to £5,000, not to mention the requirement still to have an EPC in place.

Do you have the adequate building plans required in order to complete an EPC? If you don't, our providers can arrange for plans to be completed at the same time as an EPC which will reduce costs and increase efficiency.

http://www.theovalgroup.com

How to Compare Life Insurance Quotes

Posted by De_Trainer | Posted in

Life insurance is an integral part of any estate plan and an absolute necessity if you have any dependents. Luckily, these days it’s easier than ever for you to find and buy life insurance. The Internet offers many resources to get life insurance quotes and the tools to compare them. Some websites allow you to get multiple life insurance quotes with one application. Alternatively, you can still shop for life insurance with insurance agents and directly with the companies you are familiar with.

In order to get the best coverage for the best price, you need to comparison shop. It’s best to get several life insurance quotes from different companies and compare them. There are two different types of life insurance, and they are very different. Term life insurance is the most popular type of life insurance. Term life insurance is coverage that lasts for a specific term of years and then expires. Permanent life insurance, on the other hand, builds cash value and matures over time. Permanent policies combine insurance with an investment opportunity. When comparing life insurance quotes, it only makes sense to compare like policies, as many different variables go into determining a life insurance quote.

If you’re shopping for term life insurance, the most important things to consider are the cost of the premium, the length of the term, and the rating of the insurance company. Some term life policies have level-premiums, which means your payments will never rise over the length of the policy. Other policies have premiums that increase as you get older. The length of the term of the policy affects the cost of the premium. Policies with longer terms usually cost more because there is a greater likelihood of a claim being filed before the policy expires. You also have to consider if and when additional health examinations are required to maintain coverage. Should you become ill, you may not be able to renew coverage.

When comparing permanent life insurance policies, you also have to pay attention to the premium and the reputation of the insurer. A permanent life insurance quote, however, also has the added investment component that you have to consider. Some parts of permanent life insurance are guaranteed, and some are not. This can make it more difficult to determine which life insurance quote is better. There are several types of permanent life insurance. Whole life, universal life, and variable life are the three most common types. Whole life has the most guarantees, as the premium and minimum cash values and death benefits are guaranteed. Universal life has flexible premiums, however, though there is usually a guaranteed maximum premium. Variable life offers the most flexibility because the insured chooses the investments for the policy, but you cannot rely on a guaranteed cash value. Permanent life insurance is usually only recommended if you plan on keeping the policy for 20 years or more. Otherwise, there are better ways to invest your money and term life insurance will suffice.

No matter what type of life insurance you choose, picking the lowest priced life insurance quote you receive can be a big mistake. Not all insurance companies are made equal. Several companies including Standard & Poor’s, A.M. Best, and Moody’s among others all rate insurance companies based on financial strength and several other factors. These ratings will help you choose an insurer that will process and pay out claims in a timely fashion. Moreover, it’s important to choose a company that will likely remain in business for the duration of your policy.

Provided by ArticleGOLD

Include Me Out - Common Medical Insurance Exclusions

Posted by De_Trainer | Posted in

Most people assume that their health insurance either completely, or at least partially, covers all of their medical needs. Unfortunately, the fine print in your policy generally includes a list of exclusions - items that are specifically not covered - that you should be aware of.

Common Exclusions

Exclusions range from elective surgical procedures (things like LASIK and cosmetic surgery) to coverage for specific diseases that require long-term care. Here are a few common exclusions:

Pre-existing Conditions. This is one of the most common insurance policy exclusions, and it encompasses any condition for which you may have received medical care prior to the first day of coverage under a new plan. One of the ways your new insurance will cover you for these is if you were previously covered - this is why when you leave a company where you had benefits, your documentation always includes a "proof of coverage" certificate. In some cases, pre-existing conditions will be covered, but only after a waiting period of up to a year.

Elective Surgery. While elective surgery includes everything from a facelift to lap-band surgery for weight loss, and is almost never covered, there are some exceptions. Breast reconstruction after a mastectomy is generally covered, though you and your doctor may have to fight for it. Breast reduction surgery is often covered if having it will ease severe back pain, but only after other treatments have been attempted. Bariatric surgery (for weight loss) is usually excluded, but if your doctor can show a history of nutritional counseling and exercise, and you are morbidly obese, you can often get this covered. LASIK is generally not covered by medical insurance, but a separate vision insurance policy may pay for part of it, if you are no longer able to have your vision corrected by conventional means.

Hospital Stays. Time in the hospital is generally built into your insurance policy, but certain convenience features, like using the in-room telephone or television are often excluded. Hospital fees are generally extremely high, so check with your insurance company before you find yourself checked in.

Home Health Aids and Private Nursing. These are generally not covered. The Centers for Disease Control says that more than 1.4 million patients use home health care, with the average length of treatment being about 60 days. These costs can add up very quickly, so research other options - hospice care, and other volunteer organizations.

Learning Disabilities and Behavioral Problems. Because these are often classified as psychiatric issues, rather than medical, conditions like dyslexia and ADHD that require ongoing treatment are often excluded from health insurance coverage, though as information is added to medical databases, this is changing. Many policies now cover the medication for these conditions, if not the alternative treatments.

Alternative Therapies. Insurance companies are designed to deal with traditional Western-style medicine - doctors and pills - and often won't cover alternative treatments methods, which include chiropractic treatment, acupuncture, acupressure, and biofeedback - even when these treatments are used to complement conventional procedures.

Dental and Vision Care. Most insurance plans don't offer dental or vision coverage, and most corporate benefit packages offer separate dental and vision plans, however, if a dental or vision issue is the result of an accident, or another medical issue, your regular health coverage may apply.

If this list of exclusions makes you wonder why you have insurance at all, consider that most insurance does cover preventative medicine, treatment for common ailments, and general health issues, and that seeing your doctor regularly may help you stay healthy enough to never need excluded coverage.

It should also send you to your file drawer, to examine your policy, because knowing what is and is not covered is often more crucial than having coverage, and there are ways to offset the cost of excluded procedures, like instituting a flexible spending account, or taking out a supplementary life insurance policy.

Provided by ArticleGOLD

Auto Insurance Need Not Be Time Consuming

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Most insurance companies choice allow consumers seeking to insure their classic car the opportunity to coerce their vehicle encompassing 5000 miles a year . It is as a rule compulsory to make a purchase car insurance sooner taking a organ on the direction . This policy goes above and farther the typical coverage available to automobile owners, covering new than just the minimum liability .
Personal injury guarding is mandatory in all no-fault states and uninsured motorist coverage . Again, if you are carrying the same coverage’s like listed above, 4 of the 6 people would be alive covered by your state minimum line because everybody used to be under the $20,000 per person limit, but you maxed out your per accident bodily hurt at $40,00, so you would demand to take concern of $20,000 of bodily injury on your own.
4 of the 5 community would be covered by your say minimum policy since everybody was secondary to the $20,000 per person limit, however you maxed away your per disaster bodily injury at $40,000, so you would need to take care of the 5th being on your individual . Did you perceive that in orderliness to drive legally in most states, drivers are needed to purchase a minimum of obligation insurance, including building damage and fleshly injury? Car indemnification is required in all states, to one extent or another, but drivers are still clear to choose to what extent they cover their privy property and good condition . The system will be fine-tuned to the extent that you can shop online for car protection that is tailored to suit your financial needs .
Buying car assurance online saves lifetime and money—you fair fill in your details, get a quote, do a comparison between quotes from different providers, choose the the majority beneficial one, cram the application, recover it, pay the premium and in some states still print out the insurance card yourself . If you are a first age buyer, or you have a constrained budget for your car, you would carefully investigate the different insurance policies available, as an unspecific amount might suit you better financially . Being caught at the scene of an accident or at any class of traffic break off without proof of car insurance possess been cause for an expensive slip for several years . One of the simplest ways to realizing affordable machine insurance is by paying a higher deductible .
Sure, we receptacle not stop our children from in the end driving, but we can find ways to get inferior car insurance for our driving teenagers .
Just because you live in contemporary York doesn’t denote you have to pay outrageous prices for your vehivle insurance. in case you are hapless enough to acquire an accident in the UK, you will need to know some of the basics ins-and-outs of how to make a collect on your UK car insurance . While steering circle locks may damp thieves from steeling your car, the fact is that most UK motorcar insurance companies decision not allow for the fact that you have a to affect the level of your car insurance recompense . If you obtain more than a car to warrant on the selfsame policy then you can definitely achieve cheaper car protection by availing the multiple-car discount selection that many companies offer . New Jersey motorcar owners are compulsory to have corporal injury and assets damage liability, what because well as intimate injury protection (which can cover medical, rehabilitation, and burial costs, as fine as any strayed earnings due to the accident .
Personal injury protection will be mandatory in the totality of no-fault states and uninsured motorist coverage . Again, if you are carrying the same coverage’s like listed above, 4 of the 6 people would exist covered by your state minimum line because everybody used to be under the $20,000 per person limit, but you maxed out your per accident bodily harm at $40,000, so you would require to take interest of $20,000 of bodily injury on your own.
California say car insurance minimums are $15,000 for the death/injury of one person in an accident and $30,000 for the death/injury of the entire the people intricate in an collision plus an affixed $5,000 of protection to compensate for property damage . Did you experience that in arrangement to drive legally in most states, drivers are mandatory to purchase a minimum of obligation insurance, including chattels damage and physical injury? Car protection is required in all states, to one extent or another, but drivers are still clear to choose to what extent they cover their peculiar property and robustness . A simple Internet search will conduct you in the right direction allowing you’re looking for companies that choice give you online car insurance quotes . Buying car cover online saves lifetime and money—you blameless fill in your details, get a quote, do a comparison between quotes from different providers, choose the the majority beneficial one, cram the application, rescue it, pay the premium and in some states much print out the insurance card yourself .
Even if you think that it is unlikely you’ll be reimbursed for the cost, assuming you have an accident and are going to produce a claim with your car provision company then it is vital that you keep a receipt of the totality of the expenses incurred .
This type of car insurance covers the cost of repairing or replacing a vehicle on the assumption that it is clip or damaged by another vehicle or as the end of a only vehicle accident.

Provided by ArticleGOLD

Final Expense TeleSales - The Need For Insurance Selling Systems

Posted by De_Trainer | Posted in

Success in selling Final Expense Insurance comes from having a complete Insurance Selling System in place. Many times Agents may have parts of the system in place but most of the time they fall far short which then is a spiral to failure. There are several key factors which drive that success and missing anyone will create certain failure, even for the most ambitious Insurance Agent.

You can't sell to air so without Final Expense Leads one has virtually no probability for success. Quality leads, without a doubt, are the life blood of a successful agent. Final expense leads come in many different forms and price points. The industry average for "A" leads is anywhere from $25-$35 per lead and these leads can often be as old as 2 months depending on who you are receiving them from. The less sought after but should not be over looked "B" leads are far less expensive but are far more than 2 months old and have usually been contacted or "worked" before you lay your hands on them.

Most Agents usually have less than 10-20 "A" lead in there possession at any one time. Having access to such few leads stops an agent from being successful selling Final Expense. To be successful an agent needs to spend almost, if not more than, $1,000 per week on leads to have enough fresh leads to work. Unfortunately most agents aren't willing to spend that much on their business because of the risk of not making sales. So at this point the agent is setting themselves up for failure.

Insurance selling training or a mentorship program and on going training is crucial to an agent selling final expense insurance. Being able to shorten the learning curve and making each presentation count is important to the success of the agent. Without this the few leads an agent has gets wasted on inferior sales presentations and the inability to close sales. This one piece of the puzzle is lacking in the insurance industry. Agents aren't properly trained and are out of the business before they start.

An Agent needs to have access to a mentor and regular training to be able to hone skills and make each lead count. Very few organizations have quality ongoing training for their agents. Most agents are given a contract and fed to the wolves and left to defend for themselves. A sure sign there final expense business will be short lived. Good on going training is one thing the best insurance selling systems have in place.

Final Expense Telesales has a complete Insurance Selling System in place for those looking to sell final expense over the phone. Not only do agents have access to 1,000's of quality final expense leads, these leads are delivered to them real time as they arrive through a contact management system. Everything is paperless. All you need is a phone and an internet connection.

From insurancetelesales.com

Quality is a driver of motor insurance

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Motor insurance in Russia is one of the most popular insurance classes among consumers. So, what is mostly valued by motorists – in both voluntary hull and compulsory motor third party liability (CMTPL) insurance classes? We’ve asked Dmitriy Popov, OJSC ROSNO first deputy director general, to speak about principles of motor insurance client relations, details of business operation in cross-selling, and specifics of consumer and agent expectations.

Dmitriy Vladimirovich, judging from the recent statements made by representatives of your company, current ROSNO motor insurance strategy in particular, and in retail in general, comes to providing client with maximum CMTPL services, in order to offer him hull and other products. What determines this strategy? Why do you cater for the service, and not other marketing elements?

CMTPL is an active demand product. People buy it as they are legally bound, thus it’s obvious, that the majority of new clients – individuals – have been attracted by insurance companies through this class in 2003, when the CMTPL Law was introduced. But any company has to develop the existing client base. And cross-selling should be inevitably added to CMTPL portfolio. By successful cross-selling strategy insurer can significantly strengthen its market positions. So, motor insurance share, including CMTPL, in ROSNO portfolio has increased from 30% in 2005 to 42% today. In 2006, insurance premiums under this class grew nearly twofold.

Hypothetically, different approaches can lead to success in the insurance market. First, what lies on the surface, is price competition, but it’s banned in CMTPL business. Second – competition in commission rates and terms and conditions for intermediaries. In CMTPL this is limited by general agreement between market players. And third strategy lies in trying to provide maximum services to client and win because of that. At this, company should inform target audience that such service is provided in reality. Consumer is very concerned that promises meet real facts.

Is cross-selling in CMTPL today’s reality for ROSNO? All companies emphasize its importance; however, not a single one will say that it started CMPTL business only to receive firsthand premiums. In reality, only few companies managed to develop their client bases in this way…

There are enough successful cross-sellers in the insurance business, however success differs considerably. The key factors to positive cross-selling performance are correct incentives and follow up on sales network operation. Failure to conduct systematical work in this area may result that most agents will focus on CMTPL, as it’s simpler. On the other hand, one can loose its agents by toughing requirements for salespersons without giving them any sale tools. Even in case the tools, similar to those used by competitor, are provided, but the requirements are still elevated, there is high risk that all agents will go to the competitor. Thus, we try to use self-approved approach: give unique tools (each our product should be better than average product in the market) and introduce control over performance in cross-selling. CMTPL is an identical product; thus, range of offered services should be exclusive.

How does this exclusiveness go in line with strategies of Federal Antimonopoly Service, Federal Service for Insurance Supervision and Russian Association of Motor Insurers, which closely monitor that gifts are not provided to CMTPL clients?

It is not necessary to give gifts in order to make your offer more attractive than your competitor’s one. You should merely realize client’s needs in compulsory insurance and try to provide full and demanded service to the maximum extent. At the same time nobody says that it should be free of charge. It is more important that the price should be economically justified. ROSNO does not sell any services below their cost. As for the matter, we try to be innovative and go ahead the market.

Who is your target client in motor insurance? Did company recently change the image of an ‘ideal client’?

It’s impossible for a company to select target client ‘for the whole lifecycle’. ROSNO has hundreds of thousands of clients; they have similarities and differ in their own ways. The most prospective client group (‘higher than average’ income segment) owns more powerful cars (in CMTPL terms) or more expensive and new (in hull terms). In a whole, these definitions correspond. This segment has higher cross-selling potential, often such motorists insure property. Here, readiness to pay money for insurance is higher than average person’s, who bought CMTPL policy only as it was compulsive. And if this segment has more opportunities to sell insurance services – insurance companies focus on it.

Do you have any interesting statistics on motor insurance – traffic accident rate, theft rate breakdown by brands, big and small losses ratio?

For example, by statistics of the State Road Inspection, the most hijacked brand is Volkswagen, in our portfolio it’s Toyota. Recently, we’ve tried to conduct ratemaking by brand. First time it was done two years ago. Then we registered no statistically important deviations from average indicators practically by every brand. We saw that correct ratemaking should be based on car’s cost and age, as well as driver’s age and record. Car’s brand and color was not statistically important at that time. Today, having collected significantly bigger exposition, we can define risk factors by several brand groups and introduce ratemaking by brand. We believe that it will enable imposing fairer tariffs meaning more successful sale of our products in the hull insurance market. Actuaries’ precise and laborious work with massive databases allowed our company to include car’s brand and model into rating factors list.

Is there any natural depth border for such ‘fair ratemaking’? Is it feasible and profitable to deepen segmentation and multiply correctional ratios? Is there a risk that insurance agent will find it uncomfortable and turn to competitors with simplified tariff system?

It greatly depends on company’s technological performance. For example, today we’re introducing salesperson’s software installed on his laptop or PDA. Agent fills in car’s specifications and gets complete tariff. Some companies have similar software for showrooms. We believe that such software is necessary for mass use in retail segment, as it enables agents to work with complex tariff systems.

Does each ROSNO agent have a laptop?

Are you surprised? Quite a lot of them have laptops and the majority of our successful agents are advanced PC users. Moreover, each three months we conduct contests and third place winner (awarded in big amount) can receive laptop, as it’s not that expensive today.

It’s not a matter of price, but that it symbolizes particular level of ‘advancement’. Person with laptop is not the image of insurance agent we are used to.

We believe that only computer literate salesperson can successfully sell motor insurance. However, going back to detailed elaboration, we think that insurance documentation should be simplified to the maximum extent. If we assume that particular condition effects ratemaking, we collect statistics before calculating correctional ratio. For this purposes, we’ve included 1-2 additional questions, inclined to collect ‘future’ statistics, to the application for motor insurance.

It’s worth mentioning merely mathematical difficulties emerging at the detailed approach to ratemaking. In order to decide on ratio introduction, we need data for several hundreds of car-years, only then calculations will be meaningful.

Unfortunately, any Russian insurer’s exposition volume can be insufficient even for filling out all blocks of tariff tables with factual portfolio data. Thus, we extrapolate it, and it, in turn, reduces accuracy. Largest foreign companies have vast statistical base. But one question emerges: can their data be automatically transferred onto our Russian practice? It is not true. We have very interesting analysis of loss ratio under our special product for women – ROSNO-Lady hull policy. It is tailored for the need in high level of service. At designing the program we were guided by lower accident rate indicators of women in Western Europe and Israel. It turned out that statistics in Russia is somewhat different: average claim of women is low, too, but accident rate is higher. However, small changes can make this product quite interesting. Such research always gives grounds for some further steps.

Was ROSNO’s leap in the CMTPL market in 2006 linked to refusal from stricter client selectiveness practiced during last years?

No, selection criteria were not changed, segment strategy in CMTPL was our company’s feature from the very beginning. You can easily check whether it was strict by looking at average amount of premium in portfolio. Having compared its dynamics with natural market dynamics, we see that our average premium indicator is slightly reducing, and this partial decrease can be explained only by proactive CMTPL sales in regions and network development. However, we don’t extend our presence in every region.

It’s well-known that sometimes regional ratios are not balanced. There are regions where CMTPL development is unprofitable. But in some cases we did so taking into account further potential of cross-selling. Today, after three years in the CMTPL market, we can clearly define attractive segments. Some segments, which were not profitable before, have become more attractive today, and we focus our salespersons on them. Let me also note that in 2006 we have actively operated in corporate CMTPL insurance business and paid attention to a range of new client niches. And, of course, we have significantly extended our sales network. The main indicator of network development, in our opinion, is the number of effective agents.

What do you mean by an ‘effective agent’?

Number of ‘formal’ agents can be easily puffed up, it’s much more difficult to establish agent network which really sells. If we look at how much an agent should sell in order to receive commission which will provide him with average well-being in his region, we will come to the ‘effective agent’ term. This term is included in all company’s documents on sales management. We evaluate quality of agency management or agent group manager performance by the number of effective agents, as it determines his salary and monthly bonuses. In 2006, effective agents’ indicator has grown twofold and it gives real results in CMTPL business. Number of only registered agents, on contrary, remained unchanged, so we’ve focused on cleaning our base from ‘formal’ agents. Also, introduction of innovative services promoted by fine advertising campaign has contributed to agents’ effective performance.

If we touched upon advertising, could you comment on changes in your company’s advertising strategy, in particular, the recent ROSNO commercial? Gosha Kutsenko, who had previously advertised your company, is famous Russian actor. Now, we can see clear shift to emphasized ‘western’ style – foreign actor plays in commercial and it features a song in foreign language…

The new commercial goes in line with our ‘non-accident’ advertising and marketing concept. The decision to film this commercial was taken long before February 20, 2007 (date when Allianz changed its share in company’s capital – editor). And giving up the ‘domestic’ concept was not made ‘by accident’, too. You will agree that today in Russia almost each large insurer uses some famous Russian actor with very short haircut to promote its services. Competing insurers start to look alike in their commercials. So, we faced a necessity to create something different, we had to make next step in developing our brand. It’s true, that our new commercial was filmed abroad and visually foreign commercials greatly differ from Russian ones. The fact that you could’ve told the difference proves that we had achieved our goal. Objective of this advertising phase is not to speed up sales growth or market share increase. It’s more deep and long-term – to show brand, create particular image.

Your company has quite widely demonstrated ROSNO brand estimate at almost $450 mln. Is it good or bad for ordinary clients?

Is it good for client when company costs, for example, $1.5 bln? Most likely, it’s good, because objectively estimated cost reflects company’s reliability more than its authorized capital or other formal figures. If we look at companies which took ‘French leave’ from the CMTPL market, then we will see that virtually none of them had experienced problems with authorized capital. However, they had problems with their costs. In reality, it was null or even negative. In this light, cost of brand is very important: a company, which brand costs that much, will not disappear from the market.

What if we look from viewpoint of voluntary insurance products cost? Expenses for brand development are included in price making, i.e. are paid by the clients?

We should look deeper. Insurers’ (large players) advertising expenses amount to very small part – up to 5% of collected insurance premiums, or even significantly less, which is more often. For example, ROSNO’s expenses are substantially less. Thus, brand price making at a rate of $30 mln a year was accompanied by advertising expenses which were considerably less. It reflects that we are not wasting our clients’ money, but use them quite efficiently.

Is ROSNO going to receive ISO quality certificate?

ISO standards are implemented in Allianz. ROSNO, as Group’s member, might also pass certification, however, in my opinion, it’s not a top-priority objective. For end-user, it’s not the most important factor of insurer’s evaluation, meaning, that it’s impossible to enter the higher quality level only by having such certificate. The most important is to focus on consumer in company’s everyday work and high quality of business processes. However, at particular development phase, the certification should be passed, since our shareholder, a transnational public company, traded at leading stock exchanges, should have all its subsidiaries ISO passed.

ROSNO actions are aimed at promoting its image and maintaining quality performance in retail business in line with western standards (IFRS financial reporting, business processes’ standardization, and western creative elements in advertising). All our activities are meant to break common Russian stereotype of domestic service unobtrusiveness. And Russian CMTPL consumer starts to value quality service. I would like our company’s name to cause only satisfactory smile on our client’s face. For it’s the only approach which allows strengthening company’s positions in this market for the years to come.

Nice from insur-info.