• zInternationalStudents Blog

  • Saturday, January 19, 2019

  • What is this “AM Best rating” I keep hearing about?

    Filed Under: Health Insurance

A M Best is a rating company founded by Mr. Alfred M Best in 1899. Being in the rating industry for well over a century, they have acquired a very good name and reputation for themselves by virtue of a highly impartial and trustworthy rating methodology. It is a privately held company, and rates insurance providers all over the world.

AM Best considers factors like a provider’s balance sheet, credit worthiness, operating philosophy, performance so far, and the quality of management. Based on performance in these criteria, a Financial Strength Rating is given for the company. This is seen in the industry as quite literally the opinion on whether insurers can meet their promised obligations with the policy-holders.

As far as health insurance is considered, AM Best gives 2 categories of ratings. Secure and Vulnerable. One obvious bit of advice is to avoid companies in the latter category in favor of those in the former.

Secure includes A++ & A+ (Superior), A and A- (Excellent), B++ and B+(Good) and should be preferred. Any rating below this is generally best avoided.

Now, when you are choosing a health care insurance, you might have a much better idea of what this cryptic rating system means.

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