This page provides information about financial strength ratings for insurers, the rating agencies we have approved so far, and a guideline for these agencies to understand their legislative requirements.
We have approved the following rating agencies for the purposes of Sections 60–71 of the Insurance (Prudential Supervision) Act 2010 (IPS Act):
We will update this list as other agencies are approved.
Section 60 of the IPS Act requires some licensed insurers to have a current financial strength rating from an approved rating agency.
These insurers are required to comply with various provisions, including disclosing whether an overseas policyholder preference exists and disclosure to the policyholder of the current rating before entering into or renewing a contract of insurance.
Some licensed insurers are not required to have a financial strength rating. These include reinsurers, captive insurers and small insurers (as defined in the Insurance (Prudential Supervision) Regulations) or where an exemption is granted because the insurer has ceased to enter into new contracts of insurance.
Rating agencies need to obtain our approval under IPS Act, to provide insurer ratings. We have published a rating agency approval guideline to help agencies understand the IPS Act’s requirements.
Download the rating agency approval guideline (PDF 99 KB)
Each rating agency has information on their websites about their financial strength ratings, criteria and scale:
Read Sections 60–71 of the Insurance (Prudential Supervision) Act 2010