Many would argue that credit ratings are of little use in the current environment, just a short hand way to “tick the boxes”. After all, the last big insurer to fail in the UK was A rated, as were Lehman brothers.
However, it is incumbent on brokers to check that they are placing business with reliable insurers. In the current environment, different territories within the EU have widely varying capital and solvency requirements. Many UK brokers are wary of using insurers based outside the UK not least because of a lack of understanding of relevant local capital and solvency requirements which may be below those applied to UK carriers, whatever their credit rating (never mind such niceties as membership if the FSCS!)
All this will change for risk carriers based in the EU when Solvency ii is introduced.
All insurers based in the EU will be required to maintain a solvency and capital position based on a model common across Europe. The solvency requirement will take into account a variety of stress tests and other stringent requirements all designed to ensure, as far as possible, that the insurer can survive normal business troughs and one off catastrophic events.
I am pleased to say that Acasta is well placed to meet these new European requirements.
For further information or to contact Acasta Europe Ltd, click here.
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