What does Financial Strength Mean?
Financial strength is usually determined by the rating that your insurer is given by industry rating agencies. This rating gives you an indication of how financially strong your insurer is. Usually, the highly rated insurers are less likely to fail and leave you uncovered or with unpaid claims.
Companies without demonstrated financial strength ratings or sufficient capital and surplus are at higher risk of falling into financial distress which can lead to loss of coverage and unpaid claims.
These specialist agencies rate the financial stability of insurance carriers. Bear in mind that it isn’t compulsory for a company to be rated, so only those that chose to do so will go through the process. If your insurer is not rated then check out their solvency position and previous financial track record – your broker will be able to assist you with this.
It is vital that drivers make sure their insurer has an adequate financial security rating or a suitable solvency provision. If you are not currently insured with INSHUR and you are concerned about your own insurance provider then speak to your broker. Many insurers are rated on their financial security, and these ratings can be checked with specialist rating agencies, such as A.M. Best.
Why Does This Matter To You?
Thousands of taxi drivers have been left without any coverage following the financial demise of poorly capitalized insurers. A UK based insurance company failed recently, resulting in a potentially disastrous situation for drivers. The story is not unique; the same has been seen closer to home with several US based carriers going into liquidation recently. These occurrences highlight the need for drivers to question brokers about the financial strength and reputation of their insurance company.
Is Inshur Rated?
If you are covered with INSHUR in NYC, you are in good hands.
We are backed by an A- rated carrier called Clear Blue Insurance Company. It’s crucial that you buy the right policy from an insurer that you can rely on.
Top 4 Questions to Ask Before Buying Insurance
(remember, the cheapest option isn’t always the best):
1. Who is my insurer?
Ask your broker who the insurer is. Have you heard of them before and do they have an excellent reputation in the market?
Your broker should be able to give you all of the information on the insurer you are covered by. Give them a call to be safe.
2. What is my insurers financial strength?
Is the insurer financially stable? Ask your broker what the security rating/solvency position is of each of their insurers.
In the US, the most well known insurance rating agency is A.M. Best, if your insurer is rated you will find the rating on their website.
3. What is the claims process like?
Ensure you fully understand the claims reporting process and timescales for reporting a claim. Many insurers put strict timescales when reporting a claim and will be able to inform you of the usual timescales to expect during the claims process.
4. What coverage do I have?
Do you have the correct coverage for your vehicle. Most insurers offer different products, our products are split into Silver, Gold and Platinum (all details in the app). You can find out more about Inshur policies here: https://inshur.com/faq/#qe-faq-121.
Guest Blog by Edward Hill, INSHUR’s VP of Insurance.