Way to take the hint from Fitch, Moody’s and the rest on Wall Street.
They got too cozy with their clientele and threw due diligence out the window in favor of repeat business and “AAA” investment-grade certifications.
Keep up the due diligence! Policyholders deserve an accurate assessment of their insurers’ financial strength — after all, we claim the right to assess and judge policyholders financial strength via insurance/credit scoring.
Grade School Lessons
Posted On: February 17, 2009, 11:15 pm CST
Posted By: The Corporation
Comment:
A most see movie ” The Corporation a documentary by filmmakers Mark Achbar and Jennifer ABBOTT AND Auther JOEL BAKAN
Well, we all know that AM Best has lost a ton of credibility in 2008. And don’t look for them to recover in 2009. But someone explain to me how West Bend Insurance can keep their “+” when they’ve posted a 102 in 2007, a 106 in 2008, and already know that they have reserve development issues that should take them to 105 or worse in 2009. An organization like AM Best should be at the root of these problems.
Not to mention the well-publicized problems of Cincinatti during 2008, and even in early 2009. And they are “+”? And there has to be something more deeply rooted in the problems of Selective and State Auto?
I agree, if there are not more downgrades than upgrades in 2009, then AM Best isn’t doing their job. This isn’t grade school. We don’t get to (or shouldn’t) score the carriers on a curve.
QBE should get a + in 2009 or 2010. And you are right, Traveler’s is very strong. I don’t even know how CNA remains solvent. Tisch must like throwing money away.
George,
Which companies do you see getting upgrades?
I see Erie getting a rating and perhaps Travelers. Which other ones do you see?
Way to take the hint from Fitch, Moody’s and the rest on Wall Street.
They got too cozy with their clientele and threw due diligence out the window in favor of repeat business and “AAA” investment-grade certifications.
Keep up the due diligence! Policyholders deserve an accurate assessment of their insurers’ financial strength — after all, we claim the right to assess and judge policyholders financial strength via insurance/credit scoring.
Grade School Lessons
Posted On: February 17, 2009, 11:15 pm CST
Posted By: The Corporation
Comment:
A most see movie ” The Corporation a documentary by filmmakers Mark Achbar and Jennifer ABBOTT AND Auther JOEL BAKAN
My predicition for 2009: 10 upgrades and 47 downgrades.
Let me guess, big business bad and evil. The nuts are back again, posting the same message on every line. Go away.
Well, we all know that AM Best has lost a ton of credibility in 2008. And don’t look for them to recover in 2009. But someone explain to me how West Bend Insurance can keep their “+” when they’ve posted a 102 in 2007, a 106 in 2008, and already know that they have reserve development issues that should take them to 105 or worse in 2009. An organization like AM Best should be at the root of these problems.
Not to mention the well-publicized problems of Cincinatti during 2008, and even in early 2009. And they are “+”? And there has to be something more deeply rooted in the problems of Selective and State Auto?
I agree, if there are not more downgrades than upgrades in 2009, then AM Best isn’t doing their job. This isn’t grade school. We don’t get to (or shouldn’t) score the carriers on a curve.
QBE should get a + in 2009 or 2010. And you are right, Traveler’s is very strong. I don’t even know how CNA remains solvent. Tisch must like throwing money away.