This is important because when you family s health is an issue, the health of you insurance carrier shouldn t be. Hale said the rating carries significance because it is from a well-respected outside party, and is used throughout the insurance industry as a sign of a company s strength. The company said the purpose of the rating system is to perform a constructive and objective role in the insurance industry towards prevention and detection of insurer insolvency. By taking a proactive role in the companies that we rate, A.M. Best encourages prudent management practices, therefore improving the industry s solvency and strength, the company said. Insurance professionals depend on Best s ratings to determine the financial strength and operation of specific insurers, to evaluate prospective reinsurance accounts, and to compare company performance and financial condition.
Ratings can influence agents selection of plans to market.
And, in recent years ratings have also become an increasingly important factor in consumers decisions to purchase insurance. A.M. Best said individuals and small groups are the bread and butter of BCBS of Mississippi and a major contributor to earnings. A.M. Best said. Although Blue Cross and Blue Shield of Mississippi is currently showing a profit in the segment, A.M. Best notes that the company may face challenges maintaining its current level of profitability given declining enrollment. The report on BCBS of Mississippi also said that the company has maintained its current market share by offering a broad spectrum of products.