Standard & Poor’s Ratings Services has published its revised criteria for rating insurance companies.
The revisions aim to enhance the transparency of the firm’s ratings on insurers by creating an integrated, globally consistent framework that builds on existing criteria.
The ratings framework includes business risk and financial risk profiles, as well as new rating factors and sub factors to access the impact of industry and country risks, prospective capital adequacy, and risk position.
“Our aim is to transparently disclose rating factors and clearly specify how we use them to evaluate the creditworthiness of insurance companies and arrive at ratings outcomes.”
“Consistent application of these criteria is intended to enhance the forward-looking nature and comparability of our ratings across industry sectors and geographies,” said Standard & Poor’s in a recent statement.
