Insurance Company Ratings

Every insurance company is rated as to how they conduct business, address complaints and other issues and the solvency of their operation. Insurance company ratings are meant to caution the consumer if an insurance company has vulnerabilities that may compromise the way they do business or the quality of their business.

Insurance company ratings are provided by independent financial rating companies. They provide an unbiased assessment of the insurance industry as a means to keep everyone on their toes and insurance companies always working to maintain the integrity of the business and to improve their methods of doing business.

Before doing business with an insurance company, it is wise to check the financial strength of the company. It is also a good idea to check the insurance company ratings for those companies you do business with from time to time anyways. If an insurance company is found to be insolvent, existing customers usually have serious problems to contend with. They are in danger of losing their investment and if they have a claim in the process of payout, that payout might be held or frozen for an indeterminate length of time. Guaranteed payments can also be called into question if a company becomes insolvent. If a company is near the insolvent level or has other problems that compromises the integrity of their products, it is best to find another insurance company to do business with.

There are six major companies that provide insurance company ratings and they include A.M. Best, Demotech, Inc., Fitch, Moody’s, Standard and Poor’s and The Street.com Ratings. The rating companies all use their own criteria when generating insurance company ratings. These are private companies that provide insurance company ratings and are considered only the opinions of the rating company. There is no guarantee of accuracy of the ratings but the ratings will provide the consumer with information about the financial condition of the insurance company.

A.M. Best will provide insurance company ratings for up to three insurance companies at no charge by calling their office at 908 439 2300, extension 5742. Unlimited ratings can be procured via the Internet via their web site at www3.ambest.com. Printed copies of the ratings and full reports will be provided for a fee.

Demotech, Inc., is an actuarial and financial analysis company that provides ratings of the financial stability of an insurance company. Ratings can be found via their web site at www.demotech.com.

Fitch provides financial strength ratings for a fee for up to 5 insurance companies by calling 800 893 4824. Insurance company ratings can also be found on their web site at www.fitchratings,com.

Moody’s provides no cost insurance company ratings for up to 5 insurance companies by calling 212 553 0377. Unlimited ratings can be found on their web site at www.moodys.com.

Standard and Poor’s provides no cost ratings for up to 5 insurance companies by calling 212 438 2400. Requests for reports can also be emailed to ratings_request@standardpoors.com

The Street.com provides all insurance company ratings on their web site at www.thestreet.com.