Debunking The Myths of Insurance Company Financial Ratings.

Debunking The Myth of Insurance Company Financial Ratings, Page 2.
Every ratings agency we reviewed did what they said they would do, which is to describe the financial strength of companies. But as we laid out in page 1, there are more important considerations for the consumer, then the insurers bank balance:

	AM Best: Their guide says "Financial ratings have become a strategic requirement for insurers." This can simply mean that paying an "independent" rating agency is a good PR move. Page 2 of their "about our ratings" page (in .pdf) says: "A.M. Best, founded in 1899 with the sole purpose of providing service to the insurance industry..."
	Here Moodys descibes what they do without mentioning more relevant topics, like premiums, service or if the companies fight claims: "Moody’s provides both debt ratings and financial strength ratings for life and P&C insurance companies."
	They focus on credit worthiness. From their site: "We have been rating conventional-term debt and general-obligation corporate and municipal bonds since 1916." Unless you are looking to makes loans to insruance companies, or invest in their bonds, S&Ps ratings may not help you.
	Weiss even rates mutual funds, supporting our contention that these agneces are of most beneft to investors, creditors, or he insurers themselves: Weiss Ratings' goal is to be the preeminent provider of advisory information to consumers and business professionals who are selecting or monitoring a financial services company or financial investment.