Financial strength-rating agencies for insurers
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.
Approved rating agencies
We have approved the following rating agencies for the purposes of Sections 60–71 of the Insurance (Prudential Supervision) Act 2010 (IPS Act):
- A M Best
- Standard & Poor's
- Fitch Ratings.
We will update this list as other agencies are approved.
About financial strength ratings
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 insurers don't need a rating
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 agency approval guideline
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.
Each rating agency has information on their websites about their financial strength ratings, criteria and scale: