About our Insurance Companies
There is a saying in the insurance industry: “The bitter taste of a poor claim experience lingers much longer than the sweet taste of a cheap policy.”
Like you, we want the best price for the best product, delivered by a quality insurance company. We continuously monitor this constantly changing market so that we can offer our customers options that are competitively underwritten by financially solid insurance companies who provided good service. Following is an overview of the criteria we use in selecting insurance companies:
Financial Strength and Stability:
A.M. Best & Co. is an internationally recognized independent company specializing in the analysis and rating of the “financial strength” of financial institutions, worldwide. “Financial strength”, simply stated, is the financial capacity to pay claims. Ratings are given in Alpha characters representing financial strength and a Roman numeral representing financial size, as shown on the key to in the left column:
|ABA Seguros/Chubb||A+||XV (Swiss parent company, Chubb, Ltd.)|
|El Águila||A-||IV (U.S. parent company rated A+ A+, XIII, Great American)|
|Grupo Nacional Provincial||A||IX (Mexico company)|
|HDI Seguros||A||XV (Italian parent company, Assicurazioni Generali S.p.A.)|
|Quálitas Compañía de Seguros*||B+||VIII (Mexico company)|
With one exception, all companies we represent in Mexico, or the multi-national parent company of our Mexican company, have an A.M. Best & Co. rating of “A-” or “Excellent” or better. That company, Quálitas Compañía de Seguros, is rated “B+”.
We added Quálitas to our portfolio in April 2010. Quálitas is the largest insurer of motor vehicles in Mexico. In 2011 the company applied to A. M. Best & Co. for it first rating, resulting in “C”. Over the last several years, continued improvements resulted in an A. M. Best & Co. upgrade, most recently to “B+” in June 2017. We have checked out Quálitas with highly professional insurance agents in Mexico and have received extremely positive feedback about the company. As of January 2018 we have seven years representation of Quálitas and are comfortable with the company’s financial rating and the quality of service.
Our policy administration system issues approximately 100,000 Mexico Tourist Auto policies per year. Obviously with this volume, some of our clients have claims, which gives us an opportunity to subjectively access the quality of claim service provided by our companies.
A subjective ranking in order of claim service in January 2018: ABA, HDI, Quálitas, GNP, El Águila.
Overall, our experience is quite positive with all companies. All companies pay their claims and respect the terms of their insurance contracts. The subjective rating shown above for El Águila and GNP’s are based on delays in settlement of a few isolated claims and are not due to failure to pay in accordance with their contractual obligation.
Competitiveness is measured in three dimensions: Quality of Coverage, Quality of Service, and Price. Price competitiveness various based upon the risk characteristic (vehicle value, length of policy term, type of vehicle, etc.). Companies change rates from time to time.
Coverage: Some customers want the best coverage they can find while others want the most economical coverage available. For this reason the Quote Results screen displays quotes for two types of policies: “Standard Coverage”, which is the most economical, and for “Extended Coverage”, which offers coverage upgrades that are among the very best available in Mexico.
Standard Coverage is pretty much the same for all companies. A Standard policy provides less coverage and accordingly, has a lower cost.
The Extended Coverage is a package of upgrades offered by all five of our companies. These upgrade packages vary somewhat from company to company, but all are quite a bit broader than the Standard policy and are broader than products offered by other companies. You can learn more about these upgrade packages on Special Coverage Upgrades.
Service: Please see the preceding section, Claim Service
Price: We display the quote results for all companies on one screen so that you can easily compare. One of our companies is almost always more competitive than companies we do not represent, and our companies have all earned solid Financial Strength Ratings from A. M. Best & Co.
If you find it cheaper somewhere else, remember the saying we mentioned at the start of this section: “The bitter taste of a poor claim experience lasts much longer than the sweet taste of a cheap policy.”
When you buy from www.motormexico.com you can be comfortable that we have done our home work in selecting insurance companies who provide the best combination of financial strength, quality claim service, competitive coverage, and competitive premiums available in Mexico. We don’t want the lingering bitter taste of a poor claim experience any more than you do!
|Financial Strength Classification
|E||Under regulatory supervision|
|Less the 1||I|
|1 to 2||II|
|2 to 5||III|
|5 to 10||IV|
|10 to 25||V|
|25 to 50||I|
|50 to 100||VII|
|100 to 250||VIII|
|250 to 500||IX|
|500 to 750||X|
|750 to 1,000||XI|
|1,000 to 1,250||XII|
|1,250 to 1,500||XIII|
|1,500 to 2,000||XIV|
|2,000 or greater||XV|