Relevance of Risk Rating in International Insurers: Insightful Lessons from the Year 2023

Relevance of Risk Rating in International Insurers: Insightful Lessons from the Year 2023

The echoes of the year 2023, while evoking lessons from the past, underscore the significant importance of these insights.

The emergence of international insurers, some lacking credit ratings, has been a recurring theme over the years. However, those aligned with a risk rating have consistently provided a crucial indicator, furnishing us with the information and time necessary to respond in support of advisors, agencies, and, above all, our clients.

The emphasis here goes beyond being merely a financial thermometer; it involves a detailed analysis of the financial stability of insurers. It is about staying at the forefront to minimize potential financial discrepancies for the benefit of our clients.

In a landscape marked by uncertainty, exclusive collaboration with rated companies stands as a strategic choice, an unwavering commitment to safeguarding the interests of all stakeholders.

Continuous monitoring is one of the main benefits of a Rating: in this case, it provided us with a reaction period of 7 months and 23 days for an insurer with a B+ rating.

MANIFEST LOSSES

CLIENTS	ADVISORS	AGENCIES
Loss of Insurance Coverage	Erosion of Credibility	Erosion of Credibility
Forfeiture of Paid Premiums	Loss of your portfolio and the fruits of a lifetime of labor.	Loss or reduction in Advisor structure
Policy Seniority Loss	Necessity to manage negotiations with other insurers to facilitate a transfer - if at all possible	Loss of your portfolio and the fruits of a lifetime of labor.
If you have developed a medical condition or received a diagnosis, it is probable that obtaining insurance in the future may come with exclusions - if even available	Loss of Renewal Revenues	Loss of Renewal Revenues

Credit Rating Framework