AM Best is the world’s most recognized credit rating agency. Their ratings, aptly named AM Best Ratings, help consumers evaluate the financial health of providers and their ability to pay out claims.
AM Best takes into account an insurer’s public filings, financial statements, and regulatory reports when assigning their ratings. Put simply, AM Best Ratings tell you how financially stable an insurance company is.
In most cases, if you come across an AM Best Rating, you’re looking at their Financial Strength Rating (FSR). These ratings range from A++ down to D, and are based on a wide-range of financial data points.
We break down the difference in ratings below:
Squaremouth only offers policies from financially stable travel insurance companies with an AM Best Rating of “Excellent” or higher.
AM Best Ratings are continually monitored, and are regularly upgraded or downgraded based on financial data and market activity. AM Best employs a wide-variety of tactics, such as reviewing financial statements or conducting quarterly calls, to ensure that the carriers are on track with their current rating.
When looking for insurance, you want to be confident that you’ll be reimbursed in the event you file a claim. AM Best Ratings helps travelers find policies backed by reputable, financially healthy insurance companies.
Their website offers up to five years of ratings history free of charge, giving you a look at how a company has trended over time.
Since almost all major insurers are listed on their site, it’s easy to compare ratings from one company to another. When looking for travel insurance, we recommend sticking to companies that possess a FSR of A- or higher.