an expectation that the DUAE is more likely to deliver results consistent with their business plans and achieve greater long-term stability through excellence in each of the assessment factors. Common Questions
AM Best will collect all comments on this new methodology until May 3, 2021; analyze them internally and update the proposed methodology as needed. The expected go-live date is sometime in the second half of 2021. We have listed some of the most common questions that we have received from clients and markets and our responses below.
Assessment Categories
Assessment Symbols
Assessment Ranges
Exceptional
PA-1
34-40
Excellent
PA-2
27-33
Strong
PA-3
20-26
Fair
PA-4
13-19
What is the DUAE Rating Process?
Weak
PA-5
Up to 12
The DUAE rating process resembles the current credit ratings process for insurance/reinsurance companies. This is an interactive process requiring submission of data followed by a formal management meeting to assess key factors.
Source: AM Best DUAE Draft Methodology
If I Decide to Seek a Rating, How Often Will I Get Reviewed?
The PA will be updated at least annually, but a review can take place anytime that the analyst becomes aware of any significant developments that may have an impact on the rating.
What Are My Options if I Receive a Poor Review/Assessment?
You will have an option to accept or reject the PA Assessment once the analyst team shares it with you. If you accept the assessment, you can have it made public so anyone looking for your assessment can see it. If you receive what you consider an unwarranted sub-par assessment you can reject the assessment. No public record will be made and no one will know what your assessment was. Who Performs the Assessment? Is it the Same Analysts that Review Insurers and Reinsurers?
Initially AM Best has identified analysts internally who have deep knowledge of the MGA space. They are currently analysts that cover a vast spectrum of the insurance/reinsurance market.
What is the Benefit to a DUAE to Seek a PA?
Since the PA is an independent assessment it is intended to give transparency and validity to the DUAEs business. The PA can give capital markets, insurers and reinsures comfort in forming a new or growing relationship.
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