How Can You Tell If An Insurance Company is Financially Stable in Naples,Fl?
Ackerman Insurance Services
ackerman-insurance.com
life insurance naples fl
naples life insurance
commercial insurance naples fl
business insurance naples fl
Five independent agencies—A.M. Best, Fitch, Kroll Bond Rating Agency (KBRA),
Moody’s and Standard & Poor’s—rate the financial strength of insurance companies.
Each has its own rating scale, its own rating standards, its own population of rated
companies, and its own distribution of companies across its scale. Each agency uses
numbers or plusses and minuses to indicate minor variations in rating from another
rating class.
The agencies disagree often enough so that you should consider a company’s rating
from two or more agencies before judging whether to buy or keep a policy from that
company. Moreover, agencies will announce changes of ratings on any day. It’s
probably prudent to check annually on the ratings of any company you’re interested in.
Some points for using the ratings:
Don’t rely only on what the insurance companies say about their ratings from these
agencies. Companies are likely to highlight a higher rating from one agency and ignore
a lower one from another agency, or to select the most favorable comments from a
rating agency’s report.
To use the ratings from more than one independent agency, you need to understand
that each agency’s rating code is different from the others. For example, an A+ from
A.M. Best is the next-to-top rating of its 15 categories, but an A+ from Fitch, Kroll or
S&P is their 5th-highest rating (out of 24 categories for Fitch, 22 categories for Kroll and
out of 19 categories for S&P). Moreover, Moody’s doesn’t have an A+ rating.
However, the ratings can be classified into “secure” and “vulnerable” mega-categories.
