The British Insurance Brokers’ Association (BIBA) and Litmus Analysis aim to help insurance brokers grow confident in understanding and effectively using insurance company ratings when making a choice about carriers in a joint publication. The publication also covers the use of unrated carriers.
When working with customers, both people and businesses, a broker’s advice will include the choice of insurer. As part of that decision process there will be occasions when brokers may want to check the financial standing of an insurer, whether it is rated by one of the major rating agencies or not.
A new BIBA member publication: Monitoring insurer financial strength: considerations for brokers builds on educational material linked to the BIBA Litmus Test Report tool which helps members understand the financial strength of unrated insurance carriers, and explains how ratings work and how to delve into what a rating might mean in terms of the financial security of an insurer.
Steve White, BIBA CEO said: The BIBA Litmus Test Report on unrated insurers is one of the most popular tools on our website. Our members often asked how we could assist in the understanding of assigned financial ratings by the major agencies and this new publication demystifies insurer credit ratings and will add confidence to brokers’ choice of insurer.
Stuart Shipperlee of Litmus Analysis added: This is a highly specialised subject which we have addressed using our decades of experience working in the major rating agencies. We hope the thirteen sections will give BIBA members a good grounding however, we are always happy to work with any broker to help them delve deeper into the complex topic of insurer ratings specifically and carrier financial strength more generally.
Along with many publications and guides published to help brokers help customers, Monitoring insurer financial strength is available to BIBA members at www.biba.org.uk