AM Best

AM Best Releases Methodology: Best’s Performance Assessment for Delegated Underwriting Authority Enterprises


Greg Williams
Senior Director– P/C, Life
& Annuity Composite
+1 908 439 2200, ext. 5815

Mahesh Mistry
Senior Director, Credit Rating Criteria,
Research & Analytics
+1 44 20 7626 6264, ext. 325
Kate Smith
Associate Director, Public Relations
+1 908 439 2200, ext. 5817

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644


OLDWICK - FEBRUARY 01, 2022 09:10 AM (EST)
AM Best has released a new methodology, “Best’s Performance Assessment for Delegated Underwriting Authority Enterprises.” The methodology is effective immediately.

In this methodology, AM Best introduces the Best’s Performance Assessment (Best’s PA), which provides a framework for differentiating among delegated underwriting authority enterprises (DUAEs) in the insurance industry. The Best’s PA is a forward-looking, independent and objective non-credit opinion indicative of a DUAE’s relative ability to perform services on behalf of its insurance partners.

AM Best defines DUAEs as a blanket term to capture managing general agents (MGAs), managing general underwriters, coverholders, program administrators, program underwriters, underwriting agencies, direct authorizations and appointed representatives.

AM Best believes that there are key assessment factors that are indicative of a DUAE’s relative ability to perform services on behalf of its insurance partners. The PA, as outlined in the methodology, includes an in-depth assessment of the following key components: Underwriting Capabilities, Governance and Internal Controls, Financial Condition, Organizational Talent, and Depth and Breadth of Relationships. The PA is an aggregation of the sub-assessment assigned to each component. The methodology details the information that will be necessary for AM Best to evaluate the aforementioned key assessment components.

“AM Best believes that DUAEs are an increasingly important part of the insurance ecosystem, with a higher proportion of insurance revenue being generated through DUAEs in many global regions,” said Matthew Mosher, president and CEO of AM Best Rating Services. “The presence and significance of DUAEs continue to rise, and their decisions could financially impact their insurance partners. Assessing DUAEs will provide transparency to the market and will inform the industry of a DUAE’s ability to perform services on behalf of its insurance partners.”

This methodology is available at .

AM Best had published a request for comment related to the methodology on March 15, 2021, and is publishing responses to 24 comments received during the public consultation period through the methodology in-box. AM Best would like to thank all the respondents who participated in the consultation period. The result of the comment period is published at .

Please see the Feb. 1, 2022, Best’s Commentary, “Frequently Asked Questions: Best’s Performance Assessment for Delegated Underwriting Authority Enterprises,” for a discussion of common questions related to the assessment. To access the full copy of this response document, please visit .

A video briefing about the new methodology is also available at .

The PA is not a credit rating, and it is not indicative of, nor related to, any credit rating or future credit rating of an entity. As a result, the release of the methodology will not result in any changes to AM Best’s outstanding credit ratings.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.