Standard and Poor’s (S&P) Insurance Company Ratings Explained

Standard and Poor’s provides ratings for insurance companies to help consumers choose the best provider for their needs and avoid potential losses if a company should become insolvent.

Standard and Poor’s insurance company ratings are designated by a team of financial analysts who look at a range of credit criteria before issuing a rating.

Just because Standard and Poor’s does not have a rating for a particular company does not mean that the company is insolvent or even going through hard financial times. More often than not, a lack of rating means that the company did not submit the necessary information, that there were gaps in the grading criteria, or some other review process has been stalled.

Standard and Poor’s ratings cannot prevent bad things from happening as a result of your insurance choices, but they can at least give you some insight to help make a better, more informed decision.

The letter gradations in Standard and Poor’s ratings indicate the financial stability of the insurance company. The highest rating is ‘AAA’, and the lowest rating is ‘D’.

Standard and Poor’s ratings are updated regularly to provide consumers with the most accurate information possible.

If a company’s Standard and Poor’s rating changes, it could indicate that the company is going through changes that left the analysts uncertain about future potential stability.