What are COMDEX scores for all times insurance coverage firms?

When you’ve ever tried to study selecting one of many greatest life insurance coverage firms, you’ve most likely heard concerning the significance of monetary energy scores when choosing a coverage. Nonetheless, discovering an organization’s monetary energy score could also be difficult and complicated, particularly with the numerous variations between score companies’ strategies.

To make it simpler for customers and insurance coverage brokers, EbixLife developed the COMDEX scores to compile monetary energy scores from main score companies. Nonetheless, when you’re questioning, “What’s a COMDEX score on life insurance coverage?” you’re not alone.

Maintain studying under to study COMDEX scores, what they imply, the way to discover them, and why it’s necessary to know monetary energy scores earlier than shopping for a coverage.

What are COMDEX scores for all times insurance coverage firms?

COMDEX scores are used to measure an insurance coverage firm’s monetary energy. COMDEX (which stands for composite index) combines the scores from vital insurance coverage score companies to create a percentile rating.

It averages the scores from a number of the largest monetary energy score companies, together with A.M. Greatest, Moody’s, Fitch, and Normal & Poor’s. Due to this fact, an insurance coverage firm should have scores from at the very least two of those companies earlier than receiving a COMDEX score.

Through the use of the opposite companies’ scores, the COMDEX score produces a rating between 1 and 100. The upper the rating, the upper the insurance coverage firm’s monetary energy.

The COMDEX can typically make it simpler for buyers to know the monetary energy of an insurance coverage firm as a result of the rating correlates with the percentile to which the corporate belongs. For instance, if an insurance coverage firm has a COMDEX score of 85, it’s financially stronger than 85% of the opposite firms.

How are COMDEX scores calculated?

COMDEX scores are comparatively simple to calculate, however on a regular basis customers most certainly don’t wish to spend an excessive amount of time looking a number of web sites to see every company’s score. As well as, it may be difficult to know every company’s score methodology.

Due to this fact, COMDEX scores are calculated by EbixLife utilizing VitalSigns software program. The scores are recalculated each few weeks or extra typically for large insurers. EbixLife can compile tons of data from every company to see which percentile an insurance coverage firm matches into in line with every company. The percentiles are then averaged to calculate the COMDEX score.

For instance, if an insurance coverage firm is within the ninetieth percentile from A.M. Greatest, eighty fifth percentile from Moody’s, and eightieth percentile from Normal & Poor’s, you’d merely add 90+85+80 and divide by three to get a COMDEX score of 85.

Moreover, the COMDEX score of 85 implies that the insurance coverage firm has a greater monetary energy score than 85% of the opposite insurance coverage firms.

Why are monetary energy scores necessary?

Whenever you’re looking for a life insurance coverage firm, it’s important to make sure you’re shopping for a coverage from an organization that may adequately handle its belongings and offers your life insurance coverage beneficiaries with the loss of life profit you paid for. Due to this fact, if you’re purchasing round, it may be useful to analysis an organization’s monetary energy earlier than shopping for from them.

The companies listed above (A.M. Greatest, Moody’s, Fitch, and Normal & Poor’s) price insurance coverage firms based mostly on their monetary energy, together with creditworthiness, asset administration, profitability, income forecasts, and extra.

Nonetheless, it may be difficult to know the scores from every of those companies. It might even take a subscription to entry the knowledge needed to find out an organization’s monetary energy. Alternatively, the COMDEX score is less complicated to know, compiles information from a number of sources, and is straightforward to search out on-line.

How can I determine an organization’s COMDEX score?

Sadly, VitalSigns is out there solely to insurance coverage brokers and brokers promoting insurance coverage insurance policies. Whereas they’ll present a model of the software program on their web site for particular person clients, it isn’t extensively accessible.

Nonetheless, many web sites and blogs on-line will present lists of some top-ranking firms with their corresponding COMDEX score. Merely do a web-based seek for “COMDEX scores,” and also you’re prone to discover a number of completely different lists which have been up to date not too long ago.

Who has the very best COMDEX score?

COMDEX scores could change over time, however here’s a listing of some prime life insurance coverage by 2021 COMDEX scores:

High 25 Life Insurance coverage Corporations by 2021 COMDEX Rankings

As we talked about above, COMDEX scores can change each few weeks. Due to this fact, it could be useful to debate any adjustments with an insurance coverage agent that has entry to present stories.

Researching a number of life insurance coverage firms can take effort and time. Nonetheless, in the long term, it’s price it to make sure you’re selecting an organization that can present peace of thoughts and monetary help for you and your loved ones.