So, if I have a personal package policy should I be worrying??? Seems these bad ratings come and go, have had no issues with Tower but also fearful if the catastrophic loss hits they won’t be able to deliver on their contractual promise. Any thoughts appreciated. Thanks.
Does your lender/mortgage holder require that you be on “A” paper? Depending on who it is, they might not accepta cut through or reinsurance arrangement and make you change to another carrier or go to their forced placed market
No Doubt: “A” wouln’t be an issue at this point would it? Tower has been a “B” for a year or more, haven’t they?
To Semi: shouldn’t be too concerned, if you’re on admitted paper. Insurance Guaranty Association is available to claimants of failed insurers, but I don’t think Tower is a risk of that at this point. They would likely get “bought out” at a big discount before that would happen. (likely). But, if your on Surplus paper, though, that isn’t subject to or covered under an IGA in most states.
It’s clearly the beginning of the end for Tower. If the banks and PE firms that looked at the company thought there was an opportunity, a deal would have been made and the rating would have remained at A. Now as a B company, clients are running for the exit and little if any new business is coming in. Expect that in the next 6 to 9 months the company will be sold for very little or be in run off.
So, if I have a personal package policy should I be worrying??? Seems these bad ratings come and go, have had no issues with Tower but also fearful if the catastrophic loss hits they won’t be able to deliver on their contractual promise. Any thoughts appreciated. Thanks.
Does your lender/mortgage holder require that you be on “A” paper? Depending on who it is, they might not accepta cut through or reinsurance arrangement and make you change to another carrier or go to their forced placed market
No Doubt: “A” wouln’t be an issue at this point would it? Tower has been a “B” for a year or more, haven’t they?
To Semi: shouldn’t be too concerned, if you’re on admitted paper. Insurance Guaranty Association is available to claimants of failed insurers, but I don’t think Tower is a risk of that at this point. They would likely get “bought out” at a big discount before that would happen. (likely). But, if your on Surplus paper, though, that isn’t subject to or covered under an IGA in most states.
I would be concerned – anytime a B rated company adds to their reserves it is a red flag. Does Bests have this company under review?
It’s clearly the beginning of the end for Tower. If the banks and PE firms that looked at the company thought there was an opportunity, a deal would have been made and the rating would have remained at A. Now as a B company, clients are running for the exit and little if any new business is coming in. Expect that in the next 6 to 9 months the company will be sold for very little or be in run off.