Insurance Companies strive hard to maintain a strong financial rating with AM Best and the other rating agencies. AM Best is the most common insurance rating agency in the market and is very reputable for rating these companies. I once had the opportunity to sit in on a meeting where an insurance company was being "quizzed" on their financials and I can attest that the questions where pretty difficult.
AM Best would ask questions about things that had never happened and more "what if" scenarios than you have ever heard. This causes the insurance companies to be on their twos and prepare different policies and procedures for events that may never happen. However, this does make the insurance company more prepared for a variety of situations.
Insurance Companies Comparison
If you are looking at different insurance companies for your Medicare Supplement or Medicare Advantage Plans there are several things that you should consider:
- AM BEST RATING. Make sure the company has a B+ or higher financial rating.
- Medicare Advantage plans are rated by a star scale (1 to 5) and the Centers for Medicare and Medicaid Services is the one who determines their rating on different categories.
- Anything below a B+ rating or a 3 star rating is a warning sign.
Your policy should rest in the hands a qualified insurance agent. Do not choose a policy from an agent just because he is your neighbor. Make sure to use a qualified agent with experience in the market that understands the importance of checking with different insurance companies to see who offers the best product. It is wise due diligence to get a quote with several insurance carriers.
Insurance Companies are responsible for providing the public with a service that is beneficial or hedges risk, which puts a big job on the marketing agencies for these large corporations. Insurance companies have even become appealing to consumers with their funny duck commercials (AFLAC) and their funny insurance agent named Flo (Progressive).