Financial Strength Rating vs Interactive Rating
"Financial strength ratings help buyers assess an insurer's ability to pay claims"
"An interactive rating is defined as follows:
an independent assessment of an insurer's ability to pay claims BASED ON a comprehensive qualitative & quantitative analysis"
Are these two terms the same thing? if not what is the difference?
Also, is "credit rating" and "interactive rating" the same thing as well?
Comments
It's the same thing - What you are referring to is called "financial strength interactive rating" - Page 4 of the source.
Tbh there is a write-up on page 18 in the source which talks about financial strength vs credit rating, but it doesn't make the distinction between these two concepts really clear.
That being said, on page 1: Rating agencies provide two types of ratings: credit ratings for corporate, municipal, and government bonds and financial strength ratings for life and property-casualty insurers.
I think using the definition on page 1 should suffice for any exam question