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Rating of insurance provider is an assessment of the insurance provider to payout in the event of a claim. A good ranking implies that the insurance provider has the resources and monetary reserves to honour valid claims. As life coverage claims are normally filed some years after the policy is acquired, it is wise to occassionally review the insurance providers's rating.

Rating of an insurance provider is done by rating institution. Rating is an art as much as it is a science. You should therefore not be surprised that rating for one insurance provider may differ from rating of the same insurance provider by another rating institution.

There are insurnace providers who choose not to be subjected to rating. This is because there is a cost for rating. Nothwithstanding these limitations, it is nevertheless prudent to take the ratings into account when considering the insurance provider you are taking up the policy with.

The insurance industry is regulated at the State-level. Each State has its own way of dealing with insurance providers and handling the grivances of subscribers.

Most States annually take stock of the grievances lodged against insurance providers and rate them relative to other insurance providers. If your home State maintain such a report, you should try to get hold of it. You may then be in a position to monitor the performance of your insurance provider.

The Insurance Marketplace Standards Association (IMSA) exercise oversight of its members. This came about following a bode of poor subscribers' claim experience and a spade of negative media coverge. IMSA was established to strengthen subscribers' faith in the industry. Membership of IMSA is conferred on insurance providers who fulfilled demanding IMSA's qualifications and assessment by a panel of evaluators. IMSA membership is symonymous with good governance and good customers' service. However, IMSA is NOT a regulatory authority and has no legal power to enforce members conduct of business.