Contents

Also, professionals discuss the effects of artificial intelligence on the DUAE sector

as well as the potential impact of fabricated weather reports on P/C insurers.

On Demand

Swiss Re’s Graham: Global Retirement

Savings Gap To Reach $483 Trillion by

2050

onathan Graham, head of financial

markets and inforce management,

Swiss Re, said while the retirement

savings gap is projected to increase

significantly, the life insurance industry

stands poised to address that critical

challenge.

AM Best’s Walker: AI Impacting the

Delegated Underwriting Sector

awn Walker, associate director,

AM Best, said performance

assessments for delegated

underwriting authority enterprises

(DUAEs) include analyzing the impact of

growth. Walker spoke with AM Best TV

at the InsurTech Hartford Symposium

2024.

J

Swiss Re Executive: Life Insurance Companies Ready

To Handle Widening Retirement Savings Shortfall

Dawn Walker

Jonathan Graham

D

Munich Re’s Winter: Reinsurers Face

Both Challenges and Opportunities

Head-On

n a wide-ranging interview, Marcus

Winter, president and CEO of

Munich Re US, touches on topics that

include his start in insurance and how

technology and the need for talent are

affecting the industry.

I

Marcus Winter

Meteorologist: Bogus Weather

Reports Could Defraud Insurers

ick Shema, certified consulting

meteorologist and founder of

WeatherGuy.com LLP, discusses how

made-up forensic weather reports

could be used to defraud property/

casualty insurers, particularly with

homeowners claims from hail damage.

R

Rick Shema

Scan to see new and archived video from

AM Best TV.

During US Election Year, Government Involvement Not

Needed in Insurance, Amwins Executive Says

Also, AM Best Audio discusses a Swiss Re report on 2023 natural catastrophes

that estimates insured losses at $108 billion.

Amwins’ Bernacki: No Immediate

Need for Government in Insurance

Swiss Re’s Holzheu: 2023 Natural Cat

Insured Losses Reach $108 Billion

ark Bernacki, chief underwriting officer, Amwins,

discusses the significance of an election year for

insurers, saying that there continues to be plenty of

private capital in the P/C sector, thus eliminating the need

for government involvement at this time.

homas Holzheu, chief economist Americas, Swiss Re,

discusses the company’s latest natural catastrophe

sigma report that shows the types of events that lead

to major losses, where those events took place, and the

impact on the insurance industry.

M

T

Scan to listen to new and archived audio from

AM Best Audio.

BEST’S REVIEW

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JULY 

71

AM Best TV & Audio

GUIDE TO BEST’S FINANCIAL STRENGTH RATINGS – (FSR)

A Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its o

ngoing insurance policy and contract obligations. An FSR is not assigned to specific insurance

policies or contracts and does not address any other risk,

including, but not limited to, an insurer’s claims-payment policies

or procedures; the ability of the insurer to dispute or deny claims payment on grounds of

misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. An FSR is not a re

commendation to purchase, hold or terminate any insurance policy, contract or any other

financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a speci

fic purpose or purchaser. In addition, an FSR may be displayed with a rating identifier, modifier

or affiliation code that denotes a unique aspect of the opinion.

Best’s Financial Strength Rating (FSR) Scale

Rating

Categories

Rating

Symbols

Rating

Notches*

Category

Definitions

Superior A+A++Assigned to insurance companies that have, in our opinion, a superior ability to meet their ongoing insurance obl

igations.

ExcellentAA-Assigned to insurance companies that have, in our opinion, an excellent ability to meet their ongoing insurance obl

igations.

GoodB+B++Assigned to insurance companies that have, in our opinion, a good ability to meet their ongoing insurance obligations.

FairBB-

Assigned to insurance companies that have, in our opinion, a fair ability to meet their ongoing insurance obligations. Financia

l strength is vulnerable to adverse

changes in underwriting and economic conditions.

MarginalC+C++

Assigned to insurance companies that have, in our opinion, a marginal ability to meet their ongoing insurance obligations. Fina

ncial strength is vulnerable to

adverse changes in underwriting and economic conditions.

WeakCC-

Assigned to insurance companies that have, in our opinion, a weak ability to meet their ongoing insurance obligations. Financia

l strength is very vulnerable to

adverse changes in underwriting and economic conditions.

PoorD-

Assigned to insurance companies that have, in our opinion, a poor ability to meet their ongoing insurance obligations. Financia

l strength is extremely vulnerable

to adverse changes in underwriting and economic conditions.

* Each Best’s Financial Strength Rating Category from “A+” to “C” includes a Rating Notch to reflect a gradation of financial s

trength within the category. A Rating Notch is expressed with either a second plus “+” or

a minus “-”.

Financial Strength Non-Rating Designations

Designation

Symbols

Designation

Definitions

E

Status assigned to insurers that are publicly placed, via court order into conservation or rehabilitation, or the international

equivalent, or in the absence of a court order, clear regulatory action has

been taken to delay or otherwise limit policyholder payments.

FStatus assigned to insurers that are publicly placed via court order into liquidation after a finding of insolvency, or the in

ternational equivalent.

S

Status assigned to rated insurance companies to suspend the outstanding FSR when sudden and significant events impact operation

s and rating implications cannot be evaluated due to a lack

of timely or adequate information; or in cases where continued maintenance of the previously published rating opinion is in vio

lation of evolving regulatory requirements.

NRStatus assigned to insurance companies that are not rated; may include previously rated insurance companies or insurance comp

anies that have never been rated by AM Best.

Rating Disclosure – Use and Limitations

A Best’s Credit Rating (BCR) is a forward-looking independent and objective opinion regarding an insurer’s, issuer’s or financi

al obligation’s relative creditworthiness. The opinion represents a comprehensive analysis

consisting of a quantitative and qualitative evaluation of balance sheet strength, operating performance, business profile and

enterprise risk management or, where appropriate, the specific nature and details of a

security. Because a BCR is a forward-looking opinion as of the date it is released, it cannot be considered as a fact or guaran

tee of future credit quality and therefore cannot be described as accurate or inaccurate. A

BCR is a relative measure of risk that implies credit quality and is assigned using a scale with a defined population of catego

ries and notches. Entities or obligations assigned the same BCR symbol developed using

the same scale, should not be viewed as completely identical in terms of credit quality. Alternatively, they are alike in categ

ory (or notches within a category), but given there is a prescribed progression of categories

(and notches) used in assigning the ratings of a much larger population of entities or obligations, the categories (notches) ca

nnot mirror the precise subtleties of risk that are inherent within similarly rated entities or

obligations. While a BCR reflects the opinion of A.M. Best Rating Services, Inc. (AM Best) of relative creditworthiness, it is

not an indicator or predictor of defined impairment or default probability with respect to any

specific insurer, issuer or financial obligation. A BCR is not investment advice, nor should it be construed as a consulting or

advisory service, as such; it is not intended to be utilized as a recommendation to purchase,

hold or terminate any insurance policy, contract, security or any other financial obligation, nor does it address the suitabili

ty of any particular policy or contract for a specific purpose or purchaser. Users of a BCR should

not rely on it in making any investment decision; however, if used, the BCR must be considered as only one factor. Users must m

ake their own evaluation of each investment decision. A BCR opinion is provided on an

“as is” basis without any expressed or implied warranty. In addition, a BCR may be changed, suspended or withdrawn at any time

for any reason at the sole discretion of AM Best.

For the most current version, visit

www.ambest.com/ratings/index.html

. BCRs are distributed via the AM Best website at

www.ambest.com

. For additional information regarding the development of a BCR and other

rating-related information and definitions, including outlooks, modifiers, identifiers and affiliation codes, please refer to t

he report titled “

Guide to Best’s Credit Ratings

” available at no charge on the AM Best website.

BCRs are proprietary and may not be reproduced without permission.

Copyright © 2024 by A.M. Best Company, Inc. and/or its affiliates.

ALL RIGHTS RESERVED.

Version 121719

LEVERAGE YOUR BEST’S CREDIT RATING

A+

SUPERIOR

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a BestMark for Rated Insurers on your

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BEST’S REVIEW

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