answersLogoWhite

0

  • Insurance

Are insurance ratings effective?

User Avatar

Wiki User

βˆ™ 2013-11-28 17:35:22

Best Answer
Copy

Choosing the right insurance company is usually an important financial decision - whether for personal or business purposes. Before making a decision, an important consideration is the overall financial strength of an insurer. If an insurance company cannot pay for future claims or benefits, there is little point in paying for the insurance. That is precisely why insurance ratings came into effect. These ratings represent a thorough analysis of a wide variety of risks that could affect an insurer's long-term growth and survival. According to Insure.com, insurance companies can fail or cease to operate due to inadequate financial capabilities, competitive forces or changing fundamentals in their marketplaces. Standard & Poor is the world's foremost provider of these ratings. Make sure to do your research before selecting an insurance company. But keep in mind that higher ratings are not a warranty or a guarantee of an insurer's current or future ability to meet obligations to policyholders, nor are they a recommendation of a specific policy form, contract, rate or claim practice. So, are insurance ratings effective? Yes and no. Choose wisely!

2013-11-28 17:35:22
This answer is:
πŸ€“
🀯
πŸ€”
User Avatar

2015-01-30 22:00:35
Copy

The ratings are generally accurate and are intended to refelect the companies financial strength, unfortunately though the public tends to have a gross misunderstanding of what the rating means when it comes to an insurer.

A high rating on an insurance company simply means that they have plenty of money in the bank to pay claims with. This is great information to have as we all certainly want our insurer to have the funds available when a claim is filed.

The companies rating however, has no bearing on customer satisfaction, reputation, professionalism and does not indicate to the consumer "Why" they have that much money in the bank. Are they a very large insurer with a significant market share? Do they only accept the lowest risk insureds that rarely file claims? Do they deny many claims? Are the rates absorbently high? One simply does not know just from the company rating.

The best way to pick your insurer is based on premium rates and customer satisfaction along with financial strength.

2015-01-30 22:00:35
This answer is:
πŸ€“
🀯
πŸ€”
User Avatar

Your Answer

Loading...

Related Questions

Financial rating insurance company?

Financial ratings for insurance companies is like credit ratings for consumers. Financial ratings let consumers know whether an insurance companies pays their policies.


What insurance company has the best ratings for travel insurance?

According to the travelinsurance. Net website, Travelex Travel Insurance has the best ratings. You can see the full list of travel insurance companies and their ratings on the following page. http://www.travelinsurancereview.net/reviews/


Where can one find a chart for Term Life Insurance Company Ratings?

To find Term Life Insurance Company ratings chart, please visit Insure website. They offer a lookup tool to view the latest insurance ratings where one can find the top insurance companies.


Where can one find Insurance ratings for Insurance companies?

One can find insurance ratings for insurance companies at the Insure website. One can also search Standard and Poor's measurements, and see if the insurance company one is looking at is registered with the Better Business Bureau.


Where can you find ratings for US life insurance companies?

There are several companies that issue ratings for life insurance companies, including: AM Best Company Moody's Standard & Poors Weiss Ratings


Can you purchase insurance to cover a accident?

No, you can not. All insurance policies are effective form the date of purchase, not retroactively.


What types of insurance plans does Aenta provide?

Aetna offers health insurance, dental insurance, medicare, life insurance and medical insurance plans. They offer cost-effective, high quality health insurance.


Where can insurance ratings software be found?

There are lots of places online where someone can find insurance ratings software. Some of these places are Capterra, Vertafore, TurboRater and Geltic.


Where can you find information on travel insurance ratings?

There are many places where one can find information on travel insurance ratings. This includes comparison sites such as MoneySupermarket and CompareTheMarket.


What does effective policy date mean?

The Policy effective date is the date that your insurance coverage started under that policy.


What are some of the best long term care insurance ratings?

There are a few of them that have high ratings for long term care insurance. They would be American General Life (AIG), Bankers Life and Casualty, State Farm Insurance, and New York Life Insurance Company.


Which websites offer insurance company ratings for automobiles?

A.M. Best Company rates various companies, including automobile insurance companies. Another option is Weiss Ratings, a company that rates an insurance company's financial strength.


Where can one find home insurance ratings?

One can find home insurance ratings online. There are many sites that review and point out the services of each insurance company. It also has personal reviews so you can decide on which you like the most.


Where can one find various automobile insurance ratings?

There are many places where one could find various automobile insurance ratings. One could check online sites such as iZito for information regarding insurance rates of automobiles.


Where can one find auto insurance ratings?

Auto insurance rates can be found at some online sites. One such site to check out is the official website of Consumer Report, which has ratings for a number of products and services, including auto insurance.


Where can one find ratings for companies selling life insurance?

One can find ratings for companies selling life insurance on consumer websites, including Consumer Reports, Smart Money and Insured Online. One can also find life insurance company ratings through RSS feed subscriptions.


Where can I find an insurance company with good service?

Angieslist.com is a website dedicated to reviews and ratings posted by other consumers on many different companies, including insurance companies. I would check here first to find ratings on insurance companies.


What are Western national life insurance company ratings?

Good


How are car insurance group ratings calculated?

There are a variety of factors that affect how car insurance group ratings are calculated. Among those factors are marital status, age, location, and gender.


What are the ratings and certificates for Accident Insurance - 1913?

Accident Insurance - 1913 is rated/received certificates of: USA:Approved


Where can one get health insurance ratings and reviews from real people?

Health insurance ratings and reviews from consumers can be found online from many sources. Consumer Reports is one of the more reliable sources, giving expert reviews and rating on health insurance.


Which companies sell cheap business insurance to those with low credit ratings?

Many companies offer cheap business insurance to those with low credit ratings. It is worth looking into the insurance offered by State Farm, The Bank of Montreal and Atradius.


Is Lincoln insurance a reliable insurance?

"After doing some online reading of reviews and ratings for the Lincoln Insurance Company, I have determined that people do consider them to be a reliable company."


Know Your Insurer: Check Auto Insurance Ratings?

Especially when you use a broker or site to obtain multiple quotes, remember to check auto insurance ratings to make sure you are choosing a reliable company. The standard for industry ratings is A. M. Best, and it is possible to check a company with the Best ratings online site. In addition, many consumer and car sites include reviews of insurance companies. While auto insurance ratings will tell you how solid a firm is, consumer reviews let you know how easy it is to deal with a company when filing a claim.


Where can you find business ratings for Mexico Insurance Online?

One can find ratings for Mexico Insurance Service Inc. online on the BBB (Better Business Bureau) website. The company is given the highest rating of A+.