Financial strength rating
An agency's opinion of an insurer's ability to pay claims.
Definition
A published opinion — from agencies such as AM Best, Standard & Poor's or Moody's — on an insurer's financial strength and its ability to meet its obligations to policyholders. It rates the entity carrying the risk, not the broker or the platform arranging the cover, and it is an opinion rather than a guarantee.
Why it decides money
Cargo claims can take a long time to settle. The security behind the cover matters as much as the price on the day.
Related terms
- Underwriter
- The person or entity that accepts the risk and sets the price.
- Managing general agent
- Underwrites on delegated authority from an insurer.
More in market and parties
InsuranceScanner is an insurance intermediary, not an insurer — see the Terms for our role. Nothing here is a personal recommendation that a particular cover, sum insured or deductible is suitable for you. Where anything on this page conflicts with the certificate, policy schedule or wording issued by an insurer, that document governs.