Context
BIBA has issued a press release about its aim to demystify insurance company financial strength ratings in relation to the use of unrated insurers/carriers.
Key points to note
- The British Insurance Brokers’ Association (BIBA) and Litmus Analysis aim to help insurance brokers grow confident in understanding and effectively using insurance company ratings when making a choice about carriers in a joint publication.
- The publication also covers the use of unrated carriers.
- When working with customers, both people and businesses, a broker’s advice will include the choice of insurer. As part of that decision process there will be occasions when brokers may want to check the financial standing of an insurer, whether it is rated by one of the major rating agencies or not.
- A new BIBA member publication Monitoring insurer financial strength: considerations for brokers builds on educational material linked to the BIBA Litmus Test Report tool which helps members understand the financial strength of unrated insurance carriers and explains how ratings work and how to delve into what a rating might mean in terms of the financial security of an insurer.
- Monitoring insurer financial strength is available to BIBA members.
Next actions
None – for information