Fitch Ratings, a prominent statistical rating organizations, has launched a new service called Ratings Navigator for Insurance. The new service is meant to provide more information about the insurance industry, offering insight into how the organization’s ratings work and what affects these ratings on insurance companies. Some 50 insurance companies are categorized in the service, with these insurers operating in various parts of the world and offering numerous forms of insurance coverage.
Service aims to shed some light on the insurance industry and how financial strength ratings work
The Ratings Navigator for Insurance offers users the ability to see a company’s insurer financial strength (IFS) which is a rating that Fitch provides to companies based on their overall financial health. Ratings are used in the insurance industry to measure financial capability. A low rating can be considered somewhat problematic, as it would suggest an insurer is not financially healthy. Generally, the insurance industry works to ensure that it has the money needed to handle a wide range of issues, which is why companies make an effort to have a high rating from firms like Fitch.
Service does not change the way Fitch applies ratings to companies
The new service is expected to add further value to Fitch in the analysis market. The service does not introduce new rating methodology and does change how ratings are meant to be viewed. It is meant to provide insight on how the firm’s rating criteria is applied to the insurance industry. This information is provided through color coded categories, which are meant to be easy to navigate and reduce the time it takes to obtain information concerning ratings.
Ratings continue to be an important part of the insurance industry
The insurance industry relies on ratings as a way to show that it is financially capable. These ratings often go unnoticed by consumers, but they can have a significant degree of influence on investors and the market as a whole. Fitch is only one rating firm that provides such ratings, with others using different criteria and terminology concerning their operations.
