In recent years, market instability has made headlines and created financial uncertainty even among the largest companies. So the question arises, how do you know which plans are more financially stable than others?
Dating back to the early 1900’s, independent rating agencies were established to evaluate the worthiness of financial instruments of railroad companies. Over the years, multiple rating agencies have developed a more extensive rating standard across various industries. Today, the leading rating agencies include Standard and Poor’s and AM Best.
Typically, these rating agencies use an alphabetical standard to identify which companies have extremely strong financial strength:
- AM Best uses a scale from A++ (Superior) down to F (Liquidation); According to AM Best, a company with a B+ (Good) or higher rating is classified as financially secure, while any lower rating is categorized as vulnerable.
- Standard and Poor’s uses a scale from AAA (Extremely Strong) down to CC (Extremely Weak); Standard & Poor’s requires that “all health care insurers in the secure range are expected to maintain at least ‘BBB’ level.”
This rating index is especially important as it will help ensure that your plan will have sufficient funds to pay any claims that you may incur. One of the most important functions of this system is that it also allows you can compare other insurance plans based on industry standards from independent agencies.
International Citizens only provides A rated insurance carriers to ensure that you and your family are properly insured. If you have any questions about our plans and their ratings, please feel free to contact our certified agents.