Insurance Company Strength
The financial strength of the insurance company that you use is of the utmost importance. Companies that flounder financially due to poor management or taking undue risks can jeopardize your careful financial planning. Wisquote goes to great lengths to avoid working with companies that might pose a future risk to your personal financial security.
As we learned during 2008, when most insurance companies were suddenly downgraded, and many needed federal government aid, ratings aren't everything. Our founder's background is in finance and investments. Mr. Spano looks into the financials of our insurance companies deeper than just scanning A.M. Best and S&P ratings, not only for purposes of using them for insurance, but potentially for investing in them. Wisquote takes great pride in avoiding insurance companies that might pose a future problem.
Among the financial strength criteria that Wisquote looks for in an insurance company is that the company does not take unnecessary risks which might make it difficult for it to keep its commitments when times are tough. Companies that avoided underwriting and investment risks that were inconsistent with their missions survived 2008 and the financial crisis with flying colors.
Interestingly, several companies that we use today are part of organizations that received assistance from the United States government or other governments in 2008 and 2009. Why do we use those companies? In short, because the bailouts, as unpalatable as they were, fortified some of these companies to the point of having a competitive advantage.
There are no guarantees of course, but carefully analyzing companies beyond reading a company's rating from a rating agency that didn't see 2008 coming, gives us our clients an extra margin of safety. Our ability to look deeper at the management and the financials of the companies we deal with is a clear advantage that we enjoy over most of our competitors.
Preferred Companies
Banner Life (A Legal & General Company)
Lincoln Benefit (An Allstate Company)
West Coast Life (A Protective Company)