Daily Insurance Industry News
 
 
Daily Insurance Industry News
Thursday 18th of October 2018
February 28, 2012

Ratings becoming more important to insurers

by Richard Kilner

Story link: Ratings becoming more important to insurers

Broker-only commercial insurer NIG has released new research which reveals that high-grade insurance financial strength ratings have become more important to commercial insurers when considering where to place risks.

The overwhelming majority (85%) of leading commercial insurers in the UK reported that ratings had become more important following the financial crisis.

Just over half (51%) absolutely agreed that this was the case, with 34% stating ratings were more important, but not by a large degree.

Most brokers (84%) consider the financial strength rating to be the most important factor, followed by a solvency calculation and gross written premium in third.

Almost a third (31%) of respondents indicated that an insurer’s rating was the only test they used for assessing capability and business fit.

NIG Managing Director Jon Greenwood said that it was reassuring to see insurers giving more importance to financial ratings following the financial crisis.

 

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