Accreditation is a procedure, by which the national accreditation body confirms the competency of the legal entity or corresponding conformity assessment body (CAB) to conduct certain types of works (testing, calibration, certification, and inspection).
Insurance professionals with the appropriate level of experience and education can be accredited by certain trade and insurance organizations. When shopping for an insurance professional to work with, ask what accreditations the agent or brokers in the office possess.
Accreditation can also come from the insurers the agent or broker produces for. This type of accreditation can be important if it directly pertains to the business insurance client. However, often such accreditation is more sales driven than actually helpful to the business client.
Today, almost all believe that the accredited banks insurance companies - are shell companies that help the bank to earn even more income by the borrower. This scheme works simply because buying a house or a car loan, the bank will require you to provide insurance and of course the list of "accredited" insurance companies, only of which the client has the right to choose. Undoubtedly, such actions are illegal and are found in practice, but not all banks operate in this manner, the majority, nevertheless, holds accreditation for its confidence in the insurance company.
The concept of banking accreditation of insurance company means that the bank enters into a cooperation agreement with the insurance company. Terms of such economic relations are not fixed by the legislation of the country, so that all the conditions and criteria dictated by the condition of market and the bank itself. Thus, in the pre-crisis period the bank was interested only in the amount of deposit made by an insurance company, but after many insurance companies did not survive the recent economic difficulties, and, declared bankruptcy didn’t pay compensation for damage from a variety of insurance cases, banks have become to accredit more attentive. Mandatory service of all major accounts of the insurance company and a detailed quarterly report about its activities were added to these conditions. In addition, due to lower lending activity, each customer became examine more closely given insurance companies. Today, the borrower checks the insurer's reputation checks and monitors all reviews about him. In such circumstances, also the bank has to "put away" unreliable insurance companies, even if they offer a substantial deposit.
At present, carrying out the accreditation, the bank verifies the payment ability of the insurance company payment and the total amount of insurance compensation. This makes it possible to make more accurate conclusions about the future existence of the insurance company. It should be noted that such actions let us more confidence in the banking accreditation, because in the pre-crisis period, such procedures are not very interested by the bank.
With the induced above information, it can be concluded that the bank accreditation of insurance companies is a useful phenomenon, but still own research of the presented insurance company lets us be more confident in the future.