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

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

Hold studying under to study COMDEX rankings, what they imply, learn how to discover them, and why it’s essential to know monetary power 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 power. COMDEX (which stands for composite index) combines the rankings from vital insurance coverage score businesses to create a percentile rating.

It averages the scores from among the largest monetary power score businesses, together with A.M. Greatest, Moody’s, Fitch, and Customary & Poor’s. Subsequently, an insurance coverage firm will need to have rankings from a minimum of two of those businesses earlier than receiving a COMDEX score.

By utilizing the opposite businesses’ rankings, the COMDEX score produces a rating between 1 and 100. The upper the rating, the upper the insurance coverage firm’s monetary power.

The COMDEX can generally make it simpler for consumers to know the monetary power 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 almost definitely 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 know every company’s score methodology.

Subsequently, COMDEX rankings are calculated by EbixLife utilizing VitalSigns software program. The scores are recalculated each few weeks or extra usually for giant insurers. EbixLife can compile tons of knowledge from every company to see which percentile an insurance coverage firm matches 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. Greatest, eighty fifth percentile from Moody’s, and eightieth percentile from Customary & Poor’s, you’d merely add 90+85+80 and divide by three to get a COMDEX score of 85.

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

Why are monetary power rankings essential?

Once 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 property and gives your life insurance coverage beneficiaries with the dying profit you paid for. Subsequently, once you’re procuring round, it may be useful to analysis an organization’s monetary power earlier than shopping for from them.

The businesses listed above (A.M. Greatest, Moody’s, Fitch, and Customary & Poor’s) fee insurance coverage corporations based mostly on their monetary power, together with creditworthiness, asset administration, profitability, income forecasts, and extra.

Nonetheless, it may be difficult to know the rankings from every of those businesses. It could even take a subscription to entry the data needed to find out an organization’s monetary power. Then again, the COMDEX score is less complicated to know, compiles knowledge from a number of sources, and is simple to search out on-line.

How can I work out an organization’s COMDEX score?

Sadly, VitalSigns is offered solely to insurance coverage brokers and brokers promoting insurance coverage insurance policies. Whereas they will 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 prone to discover just a few completely different lists which were up to date just lately.

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. Subsequently, it might be useful to debate any adjustments with an insurance coverage agent that has entry to present experiences.

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 may present peace of thoughts and monetary assist for you and your loved ones.