Crotty Insurance provides insurance solutions from minimum A- security rated Insurance Companies/ Underwriters with a preference for A+.
While unrated Insurance Companies/ Underwriters may offer lower insurance premium quotations, we believe you should be aware of possible pitfalls of relying on an Insurer with no financial rating:
- Financial ratings are given once certain levels of capital are available to the Insurance Entity. The Financial Rating Model is not a perfect system and is not an absolute guarantee of the financial health of an Insurance Company. However insurance is purchased in order to transfer risk away from the customer. By deliberately opting to insure with an unrated insurance company the Client is taking a portion of the risk back on himself/ herself.
- Applying for and obtaining a rating is a relatively costly process for Insurance Companies/ Underwriters. Some would view this as a firm commitment to policyholders/ customers, shareholders and staff.
- There is no certainty that unrated Insurance Companies/ Underwriters will have the ability to pay claims.
- Some unrated Insurance Companies/ Underwriters will point to the fact that their Reinsurance arrangements are arranged with A-rated Insurers. Crotty are of the opinion that in the event of the Insurance Company failing financially, their reinsurance arrangements offer little protection to the Policyholder, who has no direct contract with the Reinsurers.
- Recent Irish & UK market experience has seen unrated Insurance Companies/ Underwriters getting into financial difficulties leaving policy holders without cover and with much uncertainty regarding outstanding claims.
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