Solvency is a measure of an insurance company’s financial health and its long-term ability to meet its financial obligations, specifically the payment of future claims. Carrier solvency is a major concern due to the high costs of catastrophic weather events. We monitor solvency through independent ratings like AM Best; a solvent carrier maintains a high surplus of capital beyond its current liabilities, ensuring that even if thousands of homes are damaged, the money is there.
Solvency
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