Insurance Company Financial Strength

Selecting the right insurance company is a vital financial decision. One important consideration is the financial strength of the insurer. If the company cannot pay future claims or benefits, other considerations become unimportant. Financial strength ratings represent an analysis of a wide variety of risks that could affect an insurer’s long term survival. Insurance companies can fail or cease to operate due to inadequate financial capabilities, competitive forces, or changing fundamentals in their marketplaces.
The Commercial Insurance Department has access to several well known insurance company rating organizations, most notably “A.M. Best”. A.M. Best Company is the leading provider of ratings, news and financial data for the insurance industry worldwide and Best's Ratings are recognized as the benchmark for assessing the financial strength of insurance related organizations and the credit quality of their obligations.
If you ever have a question about the financial condition of an insurance company, please call (800)436-1663. We can provide you with a detailed explanation of a company’s strengths and weaknesses, and offer advice as to what companies may be able to provide the financial strength and security you need.

Courtesy of Jim Malkiewicz, Commercial Insurance Department