In case you’ve ever tried to find out about selecting one of many finest life insurance coverage corporations, you’ve most likely heard in regards to the significance of monetary energy rankings when deciding on a coverage. Nonetheless, discovering an organization’s monetary energy score could also be difficult and complicated, particularly with the numerous variations between score companies’ strategies.

To make it simpler for shoppers and insurance coverage brokers, EbixLife developed the COMDEX rankings to compile monetary energy rankings from main score companies. Nonetheless, if you happen to’re questioning, “What’s a COMDEX score on life insurance coverage?” you’re not alone.

Hold studying under to find out about COMDEX rankings, what they imply, discover them, and why it’s vital to grasp monetary energy rankings earlier than shopping for a coverage.

What are COMDEX rankings for all times insurance coverage corporations?

COMDEX rankings are used to measure an insurance coverage firm’s monetary energy. COMDEX (which stands for composite index) combines the rankings from important insurance coverage score companies to create a percentile rating.

It averages the scores from a number of the largest monetary energy score companies, together with A.M. Finest, Moody’s, Fitch, and Normal & Poor’s. Due to this fact, an insurance coverage firm should have rankings from a minimum of two of those companies earlier than receiving a COMDEX score.

Through the use of the opposite companies’ rankings, the COMDEX score produces a rating between 1 and 100. The upper the rating, the upper the insurance coverage firm’s monetary energy.

The COMDEX can generally make it simpler for consumers to grasp the monetary energy of an insurance coverage firm as a result of the rating correlates with the percentile to which the corporate belongs. For instance, if an insurance coverage firm has a COMDEX score of 85, it’s financially stronger than 85% of the opposite corporations.

How are COMDEX rankings calculated?

COMDEX rankings are comparatively simple to calculate, however on a regular basis shoppers most probably don’t wish to spend an excessive amount of time looking out a number of web sites to see every company’s score. As well as, it may be difficult to grasp every company’s score methodology.

Due to this fact, COMDEX rankings are calculated by EbixLife utilizing VitalSigns software program. The scores are recalculated each few weeks or extra usually for large insurers. EbixLife can compile tons of data from every company to see which percentile an insurance coverage firm suits into in keeping with every company. The percentiles are then averaged to calculate the COMDEX score.

For instance, if an insurance coverage firm is within the ninetieth percentile from A.M. Finest, eighty fifth percentile from Moody’s, and eightieth percentile from Normal & Poor’s, you’ll merely add 90+85+80 and divide by three to get a COMDEX score of 85.

Moreover, the COMDEX score of 85 implies that the insurance coverage firm has a greater monetary energy score than 85% of the opposite insurance coverage corporations.

Why are monetary energy rankings vital?

While you’re looking for a life insurance coverage firm, it’s important to make sure you’re shopping for a coverage from an organization that may adequately handle its belongings and offers your life insurance coverage beneficiaries with the loss of life profit you paid for. Due to this fact, while you’re buying round, it may be useful to analysis an organization’s monetary energy earlier than shopping for from them.

The companies listed above (A.M. Finest, Moody’s, Fitch, and Normal & Poor’s) charge insurance coverage corporations based mostly on their monetary energy, together with creditworthiness, asset administration, profitability, income forecasts, and extra.

Nonetheless, it may be difficult to grasp the rankings from every of those companies. It might even take a subscription to entry the data vital to find out an organization’s monetary energy. Then again, the COMDEX score is simpler to grasp, compiles knowledge from a number of sources, and is simple to search out on-line.

How can I determine an organization’s COMDEX score?

Sadly, VitalSigns is obtainable solely to insurance coverage brokers and brokers promoting insurance coverage insurance policies. Whereas they’ll present a model of the software program on their web site for particular person clients, it’s not extensively obtainable.

Nonetheless, many web sites and blogs on-line will present lists of some top-ranking corporations with their corresponding COMDEX score. Merely do a web based seek for “COMDEX rankings,” and also you’re more likely to discover just a few totally different lists which have been up to date not too long ago.

Who has the very best COMDEX score?

COMDEX rankings could change over time, however here’s a listing of some prime life insurance coverage by 2021 COMDEX rankings:

Prime 25 Life Insurance coverage Firms by 2021 COMDEX Rankings

As we talked about above, COMDEX rankings can change each few weeks. Due to this fact, it could be helpful to debate any adjustments with an insurance coverage agent that has entry to present stories.

Researching a number of life insurance coverage corporations can take effort and time. Nonetheless, in the long term, it’s value it to make sure you’re selecting an organization that can present peace of thoughts and monetary assist for you and your loved ones.