Optimize rating obtained from rating agencies
A favourable rating can be of paramount importance for an insurer as it ultimately determines the financial market's perception of its financial strength and ability to meet policyholders' liabilities and hence affects its competitive position.
By the knowledge AT Global has accumulated about the methodologies used by the rating agencies to assign a rating to insurers, AT Global can help you preparing the assessment by the rating agency and optimize the rating you will ultimately obtain.
Sorts of ratings and rating methodologies
Ratings are either requested on a voluntary basis by the insurance company being rated or by a third party, such as independent financial advisers, insurance brokers or corporate buyers of insurance. When these ratings are requested by third parties, they are usually performed based on publicly available information only. While they are requested by the insurance company itself, considerable additional qualitative and quantitative information provided by the company is analysed by the rating agency.
In both cases, AT Global can help you obtain the best possible rating, by assisting you in determining the information which will be disclosed publicly and the way followed to disclose it, or by helping you constituting adequately the file for the rating agency.
Impact of integrated risk management
The methodologies used by the rating agencies are usually based on quantitative and qualitative criteria, so that the amount of capital held by the insurer is only one of the elements on which the rating will be based.
If the insurance company applies an integrated risk management including adequate corporate governance and internal controls - more may be read about that aspect in the section Enterprise Risk Management - and communicates efficiently about it, this will enhance the perception of the financial strength of the insurer by the rating agency.