Using statistics to measure insurer financial strength
Article Abstract:
Standard & Poor's has developed a qualified solvency rating system for insurance companies based on a quantitative approach that does not require analysts' direct involvement and so can be performed quickly. The system uses publicly filed statutory financial statements to generate a capital-to-risk profile based on what percentage of the companies' investment and underwriting risks are supported by actual capital. The rating also considers industry wide indicators of failure and applies those patterns in its system.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1993
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A rational approach to life insurer ratings
Article Abstract:
Consumers are focused on ratings of insurance companies because insurer solvency is an important issue, but the rating companies use many different systems that can be hard to understand. A sensible technique for ranking insurance companies is to take the ratings from the major rating services and create a composite index that ranks each company by percentile, one to 100. These percentiles would change with any change or addition of any company, keeping each company ranked in relation to the others.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1993
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The quandary of the life insurance agent in a time of uncertainty
Article Abstract:
Insurance agents should exercise discretion when choosing an insurance company for their clients' insurance policies to prevent later liability. Some suggestions for researching companies and services policies include investigating the companies' financial conditions, using the four major rating firms, and disclosing all information obtained from the investigations to the client.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1992
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