Customer Prefer Services than the Cheap Premium

With the many companies in the insurance industry certainly it will increase competition inside. With more competitive of the competition for the insurance business, various methods were carried out by the insurance company to attract the customers. Beside introducing their product through various promotions, many companies packed the new product so that the customer more interested to invest their fund to the insurance.

Further, could be guessed that with the increasing number of companies in an industry, the competition could become the unhealthy competition.That most often to be heard is the “price war” between the insurance companies, where they continue lower their rate although continuing to be just the same aim.

The question is does the insurance company will and can pay the claim when the premium income is small resulting from the decline of its price. In fact the income of the premium is parallel with the amount of its customers. If many customers purchase their insurance then its will increase the premium too and increase company's capacity to pay their customer’s claims. And again, you ought to be felt suspicious when getting cheap price offer. Although the consumer get benefit in the short term. But in the long-term will cause a loss to the customers themselves, which it is related to the company's ability to pay the claim. So as if the customer gave choices, they more prefer for the good and satisfactory services than the cheap premium but the claim is difficult. Because something that is cheapest might not be the best. What do think?