|
|
|
| |
| Rating >> Financial Sector Rating >> Insurance Rating |
|
Insurance in India used to be tightly regulated and monopolized by state-run insurers. Following the move towards economic reform in the early 1990s, the market witnessed entry of domestic private-sector and foreign companies in both life and non-life insurance business.
|
The insurance market is characterized by many new players and numerous insurance products. Given this development, CARE expects its Insurance Claims Paying Ability (CPA) Rating's to be an important input influencing the consumer’s choice of insurance companies and products. CARE’s rating process involves analysis of qualitative factors like an insurer’s business fundamentals, its competitive position, its management, ownership structure, insurance regulations, underwriting and investment strategies. Quantitative factors involve analysis of company’s risks underwritten, asset quality, profitability, liquidity, solvency and asset-liability management method.
|
CARE’s CPA Rating provides an opinion on an insurance company’s financial strength, and therefore its ability to pay policy claims under the terms indicated. CPA Rating is beneficial to:
|
- Buyers of insurance cover, as they are concerned about the insurance company’s ability to meet their claims when they arise.
- Insurance/Reinsurance companies, as it helps them create goodwill for themselves and consequently increase their business opportunities.
- Insurance agents, as it aids in promoting insurance products.
|
| For Product Information, please click here. |
| |
|
|
|