AM BestTV: Innovation Important, but Only One Element of Evaluation, Says AM Best Managing Director

CONTACTS:

FOR IMMEDIATE RELEASE

OLDWICK - FEBRUARY 05, 2020 12:15 PM (EST)
In this episode of ^AMBestTV, at the St. Joseph’s University’s InsurTech Symposium, held in Philadelphia, PA, John Andre, managing director, AM Best, discusses the credit rating agency’s approach to innovation, but added that rating evaluations also focus on items that include performance, business profile, risk management and capitalization. Click on http://www.ambest.com/v.asp?v=andre220 to view the entire program.

Andre highlighted how innovation and disruption have similar qualities.

“They both kind of swim together, because of the evolution. It is a changing world, and the industry is rising up and facing the challenges of the changing environment,” said Andre. “I think it is kind of a perfect combination of the people who are designing these products and the tools that the risk bearers can use. In my opinion, it is a good marriage of the combination of both sides.”

Andre also addressed AM Best’s draft criteria on innovation.

“In 2020, AM Best is going to update its Best Credit Rating Methodology to reflect how AM Best will incorporate innovation more formally into its rating process. AM Best has always looked at innovation; however, this will make it a more formal approach as part of the company’s business profile.”

Additionally, Andre said he believes that companies are going to have to find ways to distinguish themselves in order to survive in the 21st Century.

“It is just not about your capital and performance today, but about your performance, business profile, enterprise risk management, and ultimately, capitalization going forward.”

Recent episodes of ^AMBestTV include:

• IFRS 17 Will Present a Clearer View of Insurers, Says AM Best Associate Director: Tony Silverman, associate director, AM Best, said the change to IFRS 17 accounting standards is not expected to have a near-term impact on insurers’ credit ratings: http://www.ambest.com/v.asp?v=ifrs170120 .


• Interest Rates, Economy Drive Negative Outlook of Brazil’s Reinsurance Sector, Says AM Best Senior Financial Analyst: Guy Simoes, senior financial analyst, AM Best, said that despite a negative market segment outlook, Brazil’s reinsurers are still growing and operating in a relatively underpenetrated market: http://www.ambest.com/v.asp?v=brazilre120 .


• Climate Change, Interest Rates, Social Inflation Challenge Insurers: At the Insurance Information Institute’s Joint Industry Forum in New York, executives discuss what they view as the leading challenges insurers will face in 2020 and beyond, including the impact of rising jury verdicts and closing the protection gap: http://www.ambest.com/v.asp?v=pcjf1120 .

^AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View ^AM BestTV episodes at http://www.ambest.tv .

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.