Which companies or services rate the financial stability of insurance companies?
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Asked September 23, 2013
There are a number of services that examine and rate insurance companies. From you state government to consumer services like the Better Business Bureau, there is a lot of information available to consumers who are looking to purchase insurance. Financial ratings are especially important when you are considering a long term contract, and several companies provide financial ratings and reviews for financial institutions like insurance companies.
The best place to start is probably your own state's Department of Insurance, but there are several websites that provide statistical, financial, and consumer ratings to help you find the best company at the lowest price. Since not all insurance companies are licensed to sell all products in every state, going here first will help you avoid timely research on a company that cannot help you.
A.M. Best Company - This company reviews financial institutions for their financial reliability. They provide ratings for both the current financial health of the company as well as the long-term financial outlook. This is a good company to check with before buying long-term insurance policies because of the long-term aspect of the ratings.
Fitch Inc. - This company uses a range of statistics to calculate the ratings for insurance companies and insurance products. Fitch's ratings include current insurance trends in their calculations in addition to financial information.
Standard & Poor's - This company offers a wide range of information on insurance and other financial tools and products. They rate companies as well as particular products, such as whole life insurance policies. Standard & Poor's requires a subscription to access information.
Moody's Investor Services - Like standard & Poor's, this company requires you to be a registered user to access the information it offers. The information it provides is primarily based on financial data, similar to the A.M. Best Company.
There are also a large number of consumer resources available online. From individually written personal reviews to ratings and reviews from companies such as Consumer Reports, online research can provide you with insight that the large ratings companies don't consider.
Answered September 23, 2013 by Anonymous