When you are choosing insurance for your business needs, it’s important to be able to trust the carrier. Whether you are a veterinarian or an orthodontist, taking a look at the COMDEX Score of a company is usually a good indicator of whether you can trust them.
In this article you can learn all about the COMDEX Score and why you do need to compare companies based on it. But, we know you are a busy professional in your field. So you can always ask us for a free and easy quote, where we’ll do the heavy lifting of research into the most trusted and vetted carriers for you. If you need insurance, contact Loyall Group today so we can create calm out of chaos for you.
What Is a COMDEX Score?
A COMDEX Score is not just one rating; instead it is a “composite index”. It is a ranking amongst all insurance agencies based on financial strength indicators of the company.
Five major insurance rating agencies rate each insurance company and the composite score establishes an insurance company’s ranking. The five rating agencies include A.M. Best, Moody’s, Weiss, Standard and Poor’s, and Fitch.
Each rating agency usually assigns a letter grade to its score, making it easier for comparison. Although, each agency assigns letters in a slightly different way, which makes it important to look for the actual number score and indicators that were used to score.
What Does the Rating Mean?
The ranking puts a company in a lineup of all insurance companies. For example, a ranking of 80 means that the insurance company performed better than 80% of all other insurance agencies. This verifies itself as a strong company.
To find the composite score, you need to find the mean of the scores that ranked the company. So, if an insurance agency was rated by AM Best, Fitch, and S&P, you would add their rankings then divide by three to find the composite score.
Where Can I Find the COMDEX Score of a Company?
COMDEX Scores are housed in VitalSigns, which is created by a company called EbixExchange. The software has over 500 insurance carrier’s data. It aggregates the information it collects using yearly financials submitted to the NAIC by companies.
Using the data, it creates reports for financial institutions using all the ratings that company has. If an insurance company has been rated by three agency’s, VitalSigns will combine all the data to give the COMDEX Score.
The best way to obtain COMDEX Scores while purchasing insurance is to work with a trusted advisor. Our team can access the scores and provide you with quotes from the most trustworthy insurance carriers. This leaves you with the freedom to do the things you need to do in your practice. Obtain peace of mind and clarity when you choose to work with Loyall Group for your insurance needs.
What Do the Rating Agencies Look For in a Company?
Rating agencies want to know if a company is one who will keep the promises it has given. They also want to know if a company is good with its finances and will be around for a while. When you purchase life insurance, for example, you are counting on an insurance agency giving your family a death benefit when you die. The rating agencies also want to know that a company is going to do this.
Some factors that a Rating Agency scores a company on include:
- Investment portfolio and 5-Year yields
- Risk adjusted capital
- Bond holdings and quality
While this isn’t an all-inclusive list of indicators for a score, it does give an example of what a rating agency looks at in a company.
Why You Should Always Look At More Than One Rating Agency
Some companies only have ratings from one rating agency. If it is an insurance company, that would probably be A.M. Best, which focuses on the insurance industry. However, it is important to make sure that a company has a rating from more than one agency. In order to have a COMDEX Score, a company must have ratings from at least two agencies.
Financial strength tells you something about a carrier’s dependability. It tells you that the company you are about to purchase insurance from is reliable in meeting its obligations. If you are purchasing insurance that you are relying on for your business practice, you’ll want to make sure it is going to be there for the long haul of your career.
Why Do Financials Matter?
When you are depending on insurance to purchase a practice or depend on for your livelihood, you want to do your due diligence in making sure the company giving you the promise is safe. The worst time to find out your insurance company isn’t going to survive an economic crisis is when you find out you have a disability. The best time is when you are getting quotes from agencies.
When you know you can trust your agency, you can rest easy with the understanding that when you need it, your insurance policies will be there for you. You work hard for your money, and you need it to work hard for you in return. Looking at the finances of insurance agencies is an important step in obtaining life, disability, or business practice insurance.
The Best Way to Obtain Quotes From Reliable Institutions is to Work with Loyall Group
We work hard to cross-reference COMDEX Scores for the carriers we obtain quotes from, so you don’t have to. When you leave your insurance in the hands of experts, you can rest assured that we will provide you with the best possible solutions for your needs. Whether you need life insurance, additional disability coverage, or are starting to purchase a practice, our quote process is a free and easy way to get the most trustworthy insurance carriers on your team. And, maybe you already have insurance, but are wanting an expert to review your coverages. Regularly reviewing your policies can identify areas of weakness, or policies that aren’t with the most trusted carriers. Having someone on your team who is experienced can navigate whether you are truly protected through your insurance policies. Contact our team today to begin an easy quote process with dependable and trustworthy carriers.