A.M. Best is the most notable and widely used rating service in the insurance industry, evaluating carriers on their creditworthiness, financial strength, and ability to meet obligations to policyholders. Established in 1899, it is one of the oldest and most trusted rating companies.
Ratings are continually reviewed and can change over time. Carriers with ratings from A++ to B+ are considered “secure,” while those with ratings from B to F are deemed “vulnerable.” While most carriers are rated by A.M. Best, some opt out due to the cost of being rated or because they are covered through Captive programs, assigned risk pools, state funds, or other specialized systems such as the Workers’ Compensation Boards in Canada or State Departments of Labor & Industries in the five monopolistic U.S. states.