Question

The other main topic here is insurance ratings. How do they work? Are they clear and objective? Should they be improved?

Answer 1

Insurance Ratings

It is wise to first review Insurance company ratings, if you want to purchase any policy. An insurance policy is only as good as the company that support it. Insurance Ratings are the trusted source for health insurance ratings, auto insurance ratings, life insurance ratings, home insurance ratings, property insurance ratings and business insurance ratings.

How do they work

There are two types of ratings, they are: Customer satisfaction ratings and financial strength ratings. Customer satisfaction ratings measures satisfactory level of consumers and financial strength ratings are based on company's financal status . All Insurance Ratings are based on the opinion of representative sample of consumers, who have used or owned the product or service being rated.

Are they clear and objective

Most of the rating companies have two types of ratings, they are Customer satisfaction rating and financial strength ratings. Customer satisfaction ratings are clear because it measures the satisfactory level of consumers.but it lack objectivity. It may vary from one consumer to another consumer.

Financial ratings are clear and objective.An insurance company that performs at the top of its industry in creditworthiness( it is the ability to repay creditors and pay claims presented.)as well as how it performs financially.

Should they be improved

In my opinion insurance Ratings are trusted source for all types insurance ratings such as health , life, property etc. Theu are derived from the comprehensive consumer studies.Insurance rating companies should do their consumer studies without any bias. They have to consider all socio economic class people.