Recognizing the Value of Rated Insurance Companies

The future looms uncertain – a series of possibilities, probabilities, and (unfortunately) unforeseeable consequences. You must plan for the unexpected and so you collect policies and concerns in equal measure. You’re never certain, though, if the protection you’ve chosen is enough. Will your insurance provide security for both you and your family? Will your claims be handled with the necessary care?

The answer relies purely on your provider’s rating.
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What is a Rated Insurance Company?

All policies are not created equal. Some rest on shaky foundations instead – with poorly rated companies unable (or unwilling) to substantiate their claims. It’s essential, therefore, for individuals to rely on proven institutions: ones with strong assessments and equally strong finances. 

When considering which agencies to choose, you must look at the ratings. These statistics – generated by independent assessors, with in-house scales used to monitor claim records, potential vulnerabilities, profit margins, and more – highlight the value of each company. They use a Grading System (A, B, C, D, E, F) to denote the overall risk of seeking a policy, and they allow you to better understand the impediments that can occur when trying to earn payments. 

This is crucial for all consumers, ensuring that they understand which companies to invest their money (and faith) in and which rather to ignore.

Who Establishes Insurance Ratings?
According to the Insurance Information Institute, four independent agencies – A. M Best, Moody’s, Standard & Poor’s, and Fitch – serve as the leading rating authorities. These organizations carefully examine each policy provider, using a series of specialized criteria to determine stability. This criterion focuses on every company’s finances, noting whether they can adequately meet every claim obligation.  

How Often are Insurance Ratings Monitored?
Agencies will typically perform annual company assessments. This allows them to more precisely monitor finances and keep consumers abreast of potential issues. Each year rating scores will be updated to reflect new information. These scores may rise as high as A++ (signifying superior profitability and stability) or as low as F (signifying the possibility of bankruptcy or loan defaults). Study each report with care.

Who Should Consumers Contact for Rating Information?
The top rating agencies share neither the same standards nor the same grading curves. It’s possible, therefore, for your chosen provider to receive a positive review from one third-party and a negative review from another (and the positive report will, naturally, be cited as a way to bolster online marketability and trust). 
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It’s recommended that you seek confirmations from each agency to receive a more accurate profile: 
A.M Best
Phone: 1-908-439-2200
Email: Customer_Service@ambest.com
Fitch
Phone: 1-800-893-4824
Email: usaclientservices@fitchsolutions.com
Moody’s
Phone: 1-212-533-1653
Email: RatingsDesk@moodys.com
Standard and Poor’s
Phone: 1-877-772-5435
Email: ratings_request@standardandpoors.com
Request specific company profiles from each of these agencies and ensure that your claims will be quickly (and completely) fulfilled.
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Conclusion
Insurance promises hope for the future – but only when policies are upheld. Choose a highly regarded, and highly rated, company to protect yourself in the wake of an emergency.