A Guide to Financial Strength

Despite recent questions over the dependability of ratings agencies, they remain the most influential tool when assessing insurer security, according to a recent survey of members of the UK's Association of Insurance and Risk Managers (AIRMIC).

More than a third of respondents (39%) ranked rating agencies as their top source of security information, while 34% said that ratings influenced the volume of business they were willing to place with a particular insurer 'between 90% and 100% of the time'.

A further 25% said they did so 50% to 90% of the time. AIRMIC said that six out of ten corporate risk managers were usually influenced by the ratings when making buying decisions.

Experience has shown us that having a particular rating has not been an absolute guarantee of long-term strength. You still need to have some understanding - a relationship - with the business partner of your choice. But understanding the importance of security, and the crucial role that informed financial strength ratings can play, is essential.

Today, the industry is under the spotlight like never before. Individual companies now disclose far more information about their business than many thought they ever would have had to do. This allows you to understand exactly what you are getting when cover is sought from a reinsurer.

www.reratings.com is not intended to be a one stop shop for buyers seeking to purchase reinsurance cover. Interested parties should, of course, make their own queries.

Ruth Lythe
Editor
The Review - Worldwide Reinsurance