Financial Strength Rating vs Interactive Rating

edited May 2022 in Feld.RtAgs

"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

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