Health Insurance Ratings

You need to know that your insurance company will be able to support you financially if you were to make a claim, which you have been paying for the right to do, and this, among other things, is the reason for insurance company ratings. Health insurance companies need to be consistent with their services and good to their customers, as they receive reviews not only from those customers, but from official rating systems as well.

How the System Works

Several organizations provide the financial ratings of health insurance companies, including Standard and Poor’s, A.M. Best, Duff and Phelps, and more. The rating that a company receives indicates the status of their financial health, determined by bad decisions they have made, continual losses, and company mergers. The rating is ongoing, as it may change as the insurance provider’s financial choices get better or worse.

Each system that the rating companies use differs largely, and so more than one organization should be consulted to deduce an accurate rating. While one rating system may be based on a company’s ability to pay on claims, another may be based on the strength of its finances.

Ratings provide a valuable resource to you and the companies themselves, as you will know who will be able to support you, and a company will know which areas it needs to work on.