What is an insurance company rating

An insurance company credit rating indicates an insurance company's solvency, financial strength, and ability to pay policyholder claims. An insurance company credit rating is considered an opinion (not a fact) issued by an independent agency.

What is a rating in insurance?

Rating — determining the amount of premium to be paid to insure or reinsure a risk. Guaranteed cost rates are fixed during the policy period. Loss sensitive rates are those that can be adjusted after the end of a policy period, based upon the insured's actual loss experience.

What determines the rating of an insurance company?

The higher your insurance score, the better an insurer will rate your level of risk in states where insurance scores are a rating factor. According to Progressive, insurance scores range from 200 to 997, with everything below 500 considered a poor score, and everything from 776 to 997 considered a good score.

What is a good insurance rating?

Five independent agencies—A.M. Best, Fitch, Kroll Bond Rating Agency (KBRA), Moody's and Standard ɪmp; Poor's—rate the financial strength of insurance companies. Each has its own rating scale, its own rating standards, its own population of rated companies, and its own distribution of companies across its scale.