What’s Your Insurance Companys’ Financial Rating?

July 9, 2013 No Comments

In this troubled economy it is more important than ever to only deal with insurance companies that are financially sound.  You need your insurance company to be there to investigate, defend and pay your claims.  If they go under, your company may have to pay all claims expenses and settlements themselves!

Like Barrons is for bonds and Morningstar is for mutual funds, the A M Best Company is an organization that provides ratings and evaluations of the financial strength of insurance companies.  Best’s financial ratings provide a credible and well known evaluation of the stability of your insurance company.

Best’s insurance company financial strength ratings are available at no cost!  Just click here.   In the “text” box enter the name of your insurance company.   Next, click the “search now” button.   You will be asked to sign in and become a member, but you only will need to register once and it’s totally free.    

A M Best Insurance Company Ratings

• A++, A+ (Superior)

• A, A- (Excellent)

• B++, B+ (Good)

• B, B- (Fair)

• C++, C+ (Marginal)

• C, C- (Weak)

• D (Poor)

• E (Under Regulatory Supervision)

• F (In Liquidation)

• S (Suspended)

In addition to the “financial rating”, Best’s also assigns each insurance company a “rating outlook”.   The Rating Outlook is the overall direction the insurance company appears to be trending.  Rating Outlooks will be either “positive”, “stable”, or “negative”. 

Finally, when you are on the insurance companies’ financial rating page, be sure to click on “news and press releases“.   Here you will find information on: layoffs, restructuring, profits, lawsuits, mergers and acquisitions.

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