What is an "A-Rated" Insurance Company?

What is an A-rated insurance company and why is it important Your insurance carrier gets a A? Hi everyone! Tia at Trailstone here to talk about the financial strength of insurance companies and why it should matter to you. 

There are two primary credit rating companies that evaluate insurance companies AM Best and Demotech. An A-rating reflects the insurer's strong financial stability and ability to meet its financial commitments, such as paying out claims. 

Which is why we purchase insurance right? So the A-rating indicates that the company is well-capitalized, adept at managing its financial responsibilities, and likely to effectively handle policyholder claims. So ratings might vary between agencies, but generally an A-rating is a positive sign of the insurer's financial health. 

We've seen more than 17 insurance companies become insolvent between 2021 and 2023. So given the current state of the insurance industry, it's more important than ever to make sure your insurance carrier is financially strong. Please reach out if you would like us to help you find the right insurance coverage with one of our 40 A-rated insurance companies. Until next time.