A financial rating from an accredited ratings agency indicates how likely a company will be to have the financial means to meet its commitments. This can help provide the insured, as well as the agent or MGA representing the policyholder, with trust, comfort and confidence in the carrier bearing their risk. (Credit: Pcess609/Adobe Stock) A financial rating from an accredited ratings agency indicates how likely a company will be to have the financial means to meet its commitments. This can help provide the insured, as well as the agent or MGA representing the policyholder, with trust, comfort and confidence in the carrier bearing their risk. (Credit: Pcess609/Adobe Stock)

There has been much talk in recent months about ratings agencies, with Florida insurers struggling to obtain adequate stability ratings. This past summer, ratings agency Demotech Inc. threatened 17 property insurers across Florida with downgrades in their ratings.

Agents and brokers are already advising clients on supply chain threats, a talent shortage, and much more right now, and making sure their clients are being placed with a financially stable and reliable carrier shouldn’t have to be a stressful process. While downgrades and lower ratings are rarely a good thing, what does an insurer’s stability rating really mean?

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.