Who determines insurance company ratings?

Insurance company ratings are determined by four companies: Standard and Poor’s Insurance Ratings Services, Moody’s Investor Services, Fitch Ratings and A.M. Best Company Inc., explains the Insurance Information Institute. Each company uses its own independent rating system.

As ratings can vary among the reviewers, an insurance company may emphasize a positive rating from one reviewer while downplaying a poor review from another, warns the Insurance Information Institute. Consumers are advised to research the ratings from two or more reviewing agencies before buying a policy. Consumers should also fully understand the ratings system of each reviewing agency before making a decision.