CertainCert Insurance Certificate Management & Tracking Blog

Insurance Requirement Question - Best's Ratings

Posted by Cary White on Wed, Feb 09, 2011 @ 15:02 PM

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AM Best - About Best's RatingsA.M. Best Rating

While some require that all insurers be an Admitted insurer, a better gauge for determining the financial strength or an insurance company is likely the Best’s Credit Rating reported by A. M. Best Co. A.M. Best Co. was founded in 1899 and was the first independent rating agency in the world to evaluate and report on the financial strength of insurance companies. Best’s Ratings are recognized as the leading independent objective insurance company evaluating entity recognized by insurance professionals. Each insurance is subjected to the same rigorous criteria intended to assess their financial strength. A.M. Best then assigns each company three types of ratings: Best’s Financial Strength Ratings; Best’s Insurer Credit Ratings; and Best’s Debt Ratings.  Every A.M. Best evaluation is an independent opinion, based on A.M. Best’s comprehensive quantitative and qualitative evaluations of a company’s balance sheet strength, operating performance and business profile. While no A.M. Best evaluation is a warranty of a company’s strength or ability to meets its obligations to policyholders or other financial obligations they are essential tools for insurance industry professionals and those that rely on insurance to weigh the strength of the insurance companies on which they rely.

Best’s Financial Strength Ratings are the most important to

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Topics: best rating, insurance requirements, A.M. Best, best's rating