Insurance Company Credit Rating

We put a lot of faith in insurance companies. We send them checks month after month, often for years at a time, all with the promise that, when we need help...when we hit a tragedy more expensive than we can afford...the firm will be there with a big check and a smile. (Well, the smile is optional.)

It's important that the insurance company is there when we need them. We don’t want to send in that claim and have them reply with a shrug emoji.

An insurance company credit rating helps avoid this. It provides an independent judgment on the financial health of an insurer. Typically, the same companies that dominate the market for bond credit ratings (A.M. Best, Fitch, Moody's, Standard & Poor's) provide the ratings for insurance companies.