Life insurance is a long-term commitment, and that’s why the financial stability of the company you choose is important. Independent rating agencies analyze insurers and issue letter grade reports that allow consumers to compare how each company measures up.
Who Issues the Ratings
AM Best, S&P Global Ratings, Moody’ s, and Fitch all rate insurers. AM Best specializes in the insurance industry. Their scale goes from A++ to D. S&P rates from AAA to D. Moody’s ratings go from AAA to C. Since not every rating agency uses the exact same method, it’s normal for your company to have slightly different grades from each agency. You can view ratings info online. Contact The Insurance House, serving Tucson, AZ for details about this.
What the Grades Measure
Credit ratings are meant to communicate how well an insurer can meet its obligations to policyholders. The higher the rating earned by an insurer, the stronger it’s perceived to be.
Using Ratings When Comparing Companies
Consumers can access current ratings on each agency’s website or request that an agent share them. Some shoppers seek out companies that are rated in the A range or higher by AM Best. However, where to draw that line is up to each consumer’s comfort level. Since these ratings can change over time, it is beneficial to check again prior to making a large purchase or during your policy renewal. Comparing ratings to consumer complaint data from your state insurance department helps to better understand how a company treats its policyholders.
Company ratings give families a simple, trusted way to gauge an insurer’s strength. Your life insurance agency at The Insurance House, serving Tucson, AZ, can explain how the ratings apply to each available option and help match coverage to the household’s needs.
