< Previous68BEST’S REVIEW • JANUARY 2023 AM Best Webinars Visit http://www.ambest.com/conferences/webinars.asp for details or to register for webinars. Streaming Live AM Best’s Briefing – Reinsurance: Roundtable Discussion on Renewals and What 2023 May Hold Senior AM Best ratings analysts will discuss the recent renewals with Liz Cunningham, chief executive officer of Somers Re, and Aditya Dutt, president of Aeolus Capital Management. Monday, Jan. 23, 10 a.m. ET. Always On: How Video Surveillance Is Changing Liability and Damage Evaluation Insurance, legal and claims experts examine how the ubiquity of video capture and recording is opening new avenues to claims evaluation, along with new concerns over privacy, accuracy and standards of evidence. Panelists include Daniel Herbert, president/CEO, Three Griffins Inc.; Brian Schneider, president, Schneider & Associates Claim Services; Christopher Kende, partner, Hill, Betts & Nash LLP; and Rachel Cooper, senior counsel, product liability & regulation, McMillan LLP. This complimentary AM Best Webinar is hosted by Best’s Insurance Professional Resources. Thursday, Feb. 16, 2 p.m. ET. On Demand AM Best’s Briefing - 2023 Outlook: Challenging Conditions Ahead Senior AM Best ratings staff discuss key factors such as economic headwinds, pricing conditions, innovation, social inflation, mortality and morbidity trends, and loss frequency and severity. The panel presents AM Best’s outlooks and explains the key factors that will affect the insurance industry landscape in 2023 and beyond. Topics covered include P/C commercial lines, P/C personal lines, life and annuity, health, reinsurance, and delegated underwriting authority enterprises. Moderator and Chief Rating Officer Stefan Holzberger is joined by Managing Director John Andre and Senior Directors Michael Lagomarsino, Michael Porcelli, Sally Rosen, Greg Williams and Carlos Wong-Fupuy. IMCA/AM Best Marketing Leader Lunch With Fortegra’s Holly Bohn Pittman In this roundtable discussion, Holly Bohn Pittman, executive vice president and chief marketing officer of Fortegra, a global specialty insurer with more than $2.45 billion in assets, covers branding, customer engagement, diversity, women’s issues, entrepreneurship and advice for marketers. Other panelists include Peter van Aartrijk, principal, Aartrijk, and IMCA CMO Council member; Lee McDonald, group vice president, AM Best; and Lori Chordas, senior associate editor, AM Best TV. This was a joint presentation of the Insurance Marketing & Communications Association (IMCA) and AM Best. Panel to Hold Briefing on Reinsurance, Discuss Recent Renewals Professionals also will examine the implications of video surveillance on liability and damage evaluation and explore what’s ahead for insurers. To Read the Magazine Online Visit bestsreview.ambest.com. On Social Media Visit @AMBestCo on Twitter, follow AM Best Information Services on LinkedIn and on YouTube. Visit www.ambest.com/socialmedia for information about how to follow AM Best on social media. Best’s Review delivers a comprehensive package of property/casualty and life/health insurance industry news, trends and analysis monthly. Find us on the internet at bestsreview.ambest.com. The latest edition of Best’s Guide to Understanding the Insurance Industry is available on Amazon.69BEST’S REVIEW • JANUARY 2023 AM Best TV & Audio Munich Re’s Giguere: M&A, Technology, Distribution Changing Landscape of Life Insurance Marc Giguere, president and CEO of Munich Re Life U.S., discusses challenges and trends in the U.S. life insurance industry, which he says is well positioned to help policyholders live longer and healthier lives. Aon’s Kraeger: New Delaware Rules Widen Captive-Based D&O Coverage Kristin Kraeger, chief brokering officer, Aon, said Delaware’s move to allow captives to cover Side A claims in directors and officers coverage will lead to more opportunities to use captives. Kraeger spoke with AM Best TV at the Delaware Captive Insurance Association Fall Forum. AM Best: Economic Pressures Constraining Emerging Insurance Markets Catherine Thomas and Angela Yeo, senior directors, AM Best, said inflation is affecting consumers’ ability to carry coverages such as flood. Both spoke at AM Best’s Europe Insurance Market & Methodology Briefings – London. Saint Joseph’s University Honors Michael Angelina Insurers gathered in Philadelphia to celebrate this year’s Maguire Academy of Insurance and Risk Management Executive of the Year Award recipient, Michael Angelina, executive in residence of the Maguire Academy at Saint Joseph’s University. Munich Re Life: M&A, Tech, Distribution Changing the Look of Life Insurance Space Also, professionals discuss the effects of Delaware’s new captive rules and examine how inflation is constraining emerging insurance markets. On Demand Marc Giguere Kristin Kraeger Catherine Thomas Insurance Industry Embracing Digital Claims Payments, One Inc. CEO Says Also, AM Best Audio explores why insurers and brokers have shied away from doing business with cannabis dispensaries. One Inc.’s Drysdale: Insurers Moving Toward Digital Claims Payments Ian Drysdale, CEO, One Inc., discusses the rapid transformation of insurers embracing digital claims payments to help enhance customer experience. Embroker’s Jennings: Cannabis Dispensaries Face Challenges Obtaining Insurance Ben Jennings, chief revenue officer for Embroker, explains that despite the rapid growth of cannabis- related business, insurers and brokers have been reluctant to target their services toward dispensaries. Michael Angelina Angela Yeo Visit www.ambest.com/ambtv to see new and archived video from AM Best TV. Visit www.ambest.com/ambaudio to listen to new and archived audio from AM Best Audio.Best’s Credit Rating Actions 70BEST’S REVIEW • JANUARY 2023 T his edition lists all Credit Rating actions that occurred between Nov. 1 and Nov. 30, 2022. For the Credit Rating of any company rated by AM Best and basic company information, visit the AM Best website at www.ambest.com/ratings/access.html or download the ratings app at www.ambest.com/sales/ambmobileapp . Operating Companies Rating Action Business Type Company Name/ Ultimate ParentAMB# CurrentPrevious Domicile FSR ICR Outlook/ Implications FSR ICR Outlook/ Implications AMERICAS LIFE/HEALTH Outlook Change L Brooke Life Insurance Company Jackson Financial Inc. 068117 AStableAStable Michigan, USA aPositiveaStable Under Review L Delaware Life Insurance Co of New York Group 1001 Insurance Holdings, LLC 009513 A- uNegativeA-Stable New York, USA a- uNegativea-Stable DowngradeL First Penn-Pacific Life Insurance Co Lincoln National Corporation 006904 ANegativeAStable Indiana, USA aNegativea+Stable DowngradeL Genworth Life and Annuity Insurance Co Genworth Financial, Inc. 006648 B-NegativeBStable Virginia, USA bb-Negativebb+Negative UpgradeL Genworth Life Insurance Co of New York Genworth Financial, Inc. 060026 C++StableC++Stable New York, USA b+StablebStable UpgradeL Genworth Life Insurance Company Genworth Financial, Inc. 007183 C++StableC++Stable Delaware, USA b+StablebStable Outlook Change L Jackson National Life Ins Co of New York Jackson Financial Inc. 060216 AStableAStable New York, USA aPositiveaStable Outlook Change L Jackson National Life Insurance Company Jackson Financial Inc. 006596 AStableAStable Michigan, USA aPositiveaStable UpgradeH Lewer Life Insurance Company Lewer Financial Services, L.P. 007393 B++StableB+Positive Missouri, USA bbbStablebbb-Positive DowngradeL Lincoln Life & Annuity Co of New York Lincoln National Corporation 006239 AStableA+Stable New York, USA a+Negativeaa-Stable DowngradeL Lincoln National Life Insurance Co Lincoln National Corporation 006664 AStableA+Stable Indiana, USA a+Negativeaa-Stable DowngradeLOrder of United Comml Travelers of Amer008181 BStableBStable Ohio, USA bbStablebb+Stable Outlook Change H ShelterPoint Insurance Company ShelterPoint Group, Inc. 008994 A-PositiveA-Stable Florida, USA a-Positivea-Stable Outlook Change H ShelterPoint Life Insurance Company ShelterPoint Group, Inc. 0098 77 A-PositiveA-Stable New York, USA a-Positivea-Stable UpgradeL Standard Life and Casualty Insurance Co Manhattan Life Group, Inc. 007408 B++StableB+Positive Utah, USA bbbStablebbb-Positive Rating Withdrawal LXL Life Ltd073313 NRB++Stable Bermuda nrbbb+Stable AMERICAS PROPERTY/CASUALTY UpgradeP AES Global Insurance Company The AES Corporation 075701 AStableA-Stable Vermont, USA aStablea-Stable Rating Withdrawal PCenter Mutual Insurance Company*003712 NRA-Stable North Dakota, USA nra-Stable Initial Rating P Concord Specialty Insurance Company Revolutionary Holding Company LLC 020972 A-NegativeNR South Dakota, USA a-Negativenr Outlook Change P FHM Insurance Company LUBA Mutual Holding Company 012015 B+PositiveB+Stable Florida, USA bbb-Positivebbb-Stable Outlook Change P Founders Insurance Company Utica Mutual Insurance Company 004332 AStableAStable Illinois, USA aPositiveaStable Outlook Change P Graphic Arts Mutual Insurance Company Utica Mutual Insurance Company 000428 AStableAStable New York, USA aPositiveaStable Outlook Change PNorthern Mutual Insurance Company003611 A-StableA-Positive Michigan, USA a-Stablea-Positive UpgradeP Peace Hills General Insurance Company Samson Cree Nation 086955 B++StableB++Stable Alberta, CAN bbb+StablebbbStable DowngradePRAM Mutual Insurance Company004814 A-NegativeANegative Minnesota, USA a-NegativeaNegative Outlook Change P Republic-Franklin Insurance Company Utica Mutual Insurance Company 000798 AStableAStable Ohio, USA aPositiveaStable * The ratings were affirmed at A-/a- on Nov. 17, 2022, and subsequently withdrawn. Outlook: Positive, Negative, Stable. Implications: Positive, Negative, Developing. Business Type: P = Property/Casualty (Nonlife); L = Life; H = Health; T = Title; C = Composite. Opinion Modifiers: u = Under Review; sf = Structured Finance; i = Indicative Credit Rating Modifier; s = Syndicate Credit Rating Modifier71BEST’S REVIEW • JANUARY 2023 Holding Companies Rating ActionCompany NameAMB# CurrentPrevious Domicile FSR ICR Outlook/ Implications FSR ICR Outlook/ Implications UpgradeGenworth Financial, Inc.059780b+StablebStableDelaware, USA UpgradeGenworth Holdings, Inc.059197b+StablebStableDelaware, USA Outlook Change Jackson Financial Inc.055931bbbPositivebbbStableDelaware, USA DowngradeLincoln National Corporation058709bbb+Negativea-StableIndiana, USA Outlook: Positive, Negative, Stable. Implications: Positive, Negative, Developing. Business Type: P = Property/Casualty (Nonlife); L = Life; H = Health; T = Title; C = Composite. Opinion Modifiers: u = Under Review; sf = Structured Finance; i = Indicative Credit Rating Modifier; s = Syndicate Credit Rating Modifier Rating Action Business Type Company Name/ Ultimate ParentAMB# CurrentPrevious Domicile FSR ICR Outlook/ Implications FSR ICR Outlook/ Implications AMERICAS PROPERTY/CASUALTY (CONTINUED) Outlook Change P Utica Lloyd’s of Texas Utica Mutual Insurance Company 012318 AStableAStable Texas, USA aPositiveaStable Outlook Change P Utica Mutual Insurance Company Utica Mutual Insurance Company 000946 AStableAStable New York, USA aPositiveaStable Outlook Change P Utica National Assurance Company Utica Mutual Insurance Company 011953 AStableAStable New York, USA aPositiveaStable Outlook Change P Utica National Insurance Co of Ohio Utica Mutual Insurance Company 014164 AStableAStable Ohio, USA aPositiveaStable Outlook Change P Utica National Insurance Co of Texas Utica Mutual Insurance Company 002825 AStableAStable Texas, USA aPositiveaStable Outlook Change P Utica Specialty Risk Insurance Company Utica Mutual Insurance Company 002826 AStableAStable Texas, USA aPositiveaStable Initial Rating P West Virginia Mutual Insurance Company MAG Mutual Holding Company 013014 AStableNR West Virginia, USA a+Stablenr Outlook Change PWestern Pacific Mutual Ins Co, A RRG011238 A-StableA-Negative Colorado, USA a-Stablea-Negative EUROPE, MIDDLE EAST AND AFRICA Outlook Change PAl Fujairah National Insurance Co PJSC090711 B++NegativeB++Stable United Arab Emirates bbbNegativebbbStable DowngradeC Al Ittihad Al Watani Soc Gen Asr Proche Nasco Ultimate Holding Limited 090592 B uNegativeB+Negative Lebanon bb+ uNegativebbb-Negative UpgradeP Chaucer Insurance Company DAC China Investment Corporation 095994 AStableAStable Ireland a+StableaPositive Rating Affirmation C First Insurance Co Al Salam Bank B.S.C. 091584 B++StableB++ uDeveloping Jordan bbb+Stablebbb+ uDeveloping Rating Withdrawal P RiverStone Insurance (Malta) SE CVC Capital Partners 091791 NRA-Stable Malta nra-Stable Rating Affirmation C Solidarity Bahrain B.S.C. Al Salam Bank B.S.C. 088717 B++StableB++ uDeveloping Bahrain bbb+Stablebbb+ uDeveloping ASIA-PACIFIC UpgradeP China Continent Prop & Cas Ins Co Ltd China Investment Corporation 090956 AStableAStable China a+StableaPositive UpgradeL China Life Reinsurance Company Ltd. China Investment Corporation 090957 AStableAStable China a+StableaPositive UpgradeP China P&C Reinsurance Company Ltd China Investment Corporation 088692 AStableAStable China a+StableaPositive UpgradeC China Reinsurance (Group) Corporation China Investment Corporation 090955 AStableAStable China a+StableaPositive UpgradeL China Reinsurance (Hong Kong) Co Ltd China Investment Corporation 071783 AStableAStable Hong Kong a+StableaPositive Outlook Change PPGA Sompo Insurance Corporation089331 B+PositiveB+Stable Philippines bbb-Positivebbb-Stable AMERICAS Initial Rating C Global Protection Reinsurance Ltd. Corporación Ficohsa S.A. 071616 B++Stable Barbados bbbStableBest’s Credit Rating Actions 72BEST’S REVIEW • JANUARY 2023 GUIDE TO BEST’S FINANCIAL STRENGTH RATINGS – (FSR) A Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. An FSR is not assigned to specific insurance policies or contracts and does not address any other risk, including, but not limited to, an insurer’s claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. An FSR is not a recommendation to purchase, hold or terminate any insurance policy, contract or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. In addition, an FSR may be displayed with a rating identifier, modifier or affiliation code that denotes a unique aspect of the opinion. Best’s Financial Strength Rating (FSR) Scale Rating Categories Rating Symbols Rating Notches* Category Definitions Superior A+A++Assigned to insurance companies that have, in our opinion, a superior ability to meet their ongoing insurance obligations. ExcellentAA-Assigned to insurance companies that have, in our opinion, an excellent ability to meet their ongoing insurance obligations. GoodB+B++Assigned to insurance companies that have, in our opinion, a good ability to meet their ongoing insurance obligations. FairBB- Assigned to insurance companies that have, in our opinion, a fair ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions. MarginalC+C++ Assigned to insurance companies that have, in our opinion, a marginal ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions. WeakCC- Assigned to insurance companies that have, in our opinion, a weak ability to meet their ongoing insurance obligations. Financial strength is very vulnerable to adverse changes in underwriting and economic conditions. PoorD- Assigned to insurance companies that have, in our opinion, a poor ability to meet their ongoing insurance obligations. Financial strength is extremely vulnerable to adverse changes in underwriting and economic conditions. * Each Best’s Financial Strength Rating Category from “A+” to “C” includes a Rating Notch to reflect a gradation of financial strength within the category. A Rating Notch is expressed with either a second plus “+” or a minus “-”. Financial Strength Non-Rating Designations Designation Symbols Designation Definitions E Status assigned to insurers that are publicly placed, via court order into conservation or rehabilitation, or the international equivalent, or in the absence of a court order, clear regulatory action has been taken to delay or otherwise limit policyholder payments. FStatus assigned to insurers that are publicly placed via court order into liquidation after a finding of insolvency, or the international equivalent. S Status assigned to rated insurance companies to suspend the outstanding FSR when sudden and significant events impact operations and rating implications cannot be evaluated due to a lack of timely or adequate information; or in cases where continued maintenance of the previously published rating opinion is in violation of evolving regulatory requirements. NRStatus assigned to insurance companies that are not rated; may include previously rated insurance companies or insurance companies that have never been rated by AM Best. Rating Disclosure – Use and Limitations A Best’s Credit Rating (BCR) is a forward-looking independent and objective opinion regarding an insurer’s, issuer’s or financial obligation’s relative creditworthiness. The opinion represents a comprehensive analysis consisting of a quantitative and qualitative evaluation of balance sheet strength, operating performance, business profile and enterprise risk management or, where appropriate, the specific nature and details of a security. Because a BCR is a forward-looking opinion as of the date it is released, it cannot be considered as a fact or guarantee of future credit quality and therefore cannot be described as accurate or inaccurate. A BCR is a relative measure of risk that implies credit quality and is assigned using a scale with a defined population of categories and notches. Entities or obligations assigned the same BCR symbol developed using the same scale, should not be viewed as completely identical in terms of credit quality. Alternatively, they are alike in category (or notches within a category), but given there is a prescribed progression of categories (and notches) used in assigning the ratings of a much larger population of entities or obligations, the categories (notches) cannot mirror the precise subtleties of risk that are inherent within similarly rated entities or obligations. While a BCR reflects the opinion of A.M. Best Rating Services, Inc. (AM Best) of relative creditworthiness, it is not an indicator or predictor of defined impairment or default probability with respect to any specific insurer, issuer or financial obligation. A BCR is not investment advice, nor should it be construed as a consulting or advisory service, as such; it is not intended to be utilized as a recommendation to purchase, hold or terminate any insurance policy, contract, security or any other financial obligation, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. Users of a BCR should not rely on it in making any investment decision; however, if used, the BCR must be considered as only one factor. Users must make their own evaluation of each investment decision. A BCR opinion is provided on an “as is” basis without any expressed or implied warranty. In addition, a BCR may be changed, suspended or withdrawn at any time for any reason at the sole discretion of AM Best. For the most current version, visit www.ambest.com/ratings/index.html. BCRs are distributed via the AM Best website at www.ambest.com. For additional information regarding the development of a BCR and other rating-related information and definitions, including outlooks, modifiers, identifiers and affiliation codes, please refer to the report titled “Guide to Best’s Credit Ratings” available at no charge on the AM Best website. BCRs are proprietary and may not be reproduced without permission. Copyright © 2023 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED. Version 121719 LEVERAGE YOUR BEST’S CREDIT RATING WITH A BESTMARK FOR RATED INSURERS 22.BM01 Showcase your financial strength with a BestMark icon on your website and promotional materials. F i n a n c i a l S t re ng t h R a t i n g A+ SUPERIOR Our Insight, Your Advantage ™ www.ambest.com (908) 439-220073BEST’S REVIEW • JANUARY 2023 GUIDE TO BEST’S ISSUER CREDIT RATINGS – (ICR) A Best’s Issuer Credit Rating (ICR) is an independent opinion of an entity’s ability to meet its ongoing financial obligations and can be issued on either a long- or short-term basis. A Long-Term ICR is an opinion of an entity’s ability to meet its ongoing senior financial obligations, while a Short-Term ICR is an opinion of an entity’s ability to meet its ongoing financial obligations with original maturities generally less than one year. An ICR is an opinion regarding the relative future credit risk of an entity. Credit risk is the risk that an entity may not meet its contractual financial obligations as they come due. An ICR does not address any other risk. In addition, an ICR is not a recommendation to buy, sell or hold any securities, contracts or any other financial obligations, nor does it address the suitability of any particular financial obligation for a specific purpose or purchaser. An ICR may be displayed with a rating identifier or modifier that denotes a unique aspect of the opinion. Best’s Long-Term Issuer Credit Rating (Long-Term ICR) Scale Rating Categories Rating Symbols Rating Notches* Category Definitions Exceptionalaaa-Assigned to entities that have, in our opinion, an exceptional ability to meet their ongoing senior financial obligations. Superior aaaa+ / aa-Assigned to entities that have, in our opinion, a superior ability to meet their ongoing senior financial obligations. Excellentaa+ / a-Assigned to entities that have, in our opinion, an excellent ability to meet their ongoing senior financial obligations. Goodbbbbbb+ / bbb-Assigned to entities that have, in our opinion, a good ability to meet their ongoing senior financial obligations. Fairbbbb+ / bb- Assigned to entities that have, in our opinion, a fair ability to meet their ongoing senior financial obligations. Credit quality is vulnerable to adverse changes in industry and economic conditions. Marginalbb+ / b- Assigned to entities that have, in our opinion, a marginal ability to meet their ongoing senior financial obligations. Credit quality is vulnerable to adverse changes in industry and economic conditions. Weakcccccc+ / ccc- Assigned to entities that have, in our opinion, a weak ability to meet their ongoing senior financial obligations. Credit quality is vulnerable to adverse changes in industry and economic conditions. Very Weakcc- Assigned to entities that have, in our opinion, a very weak ability to meet their ongoing senior financial obligations. Credit quality is very vulnerable to adverse changes in industry and economic conditions. Poorc- Assigned to entities that have, in our opinion, a poor ability to meet their ongoing senior financial obligations. Credit quality is extremely vulnerable to adverse changes in industry and economic conditions. * Best’s Long-Term Issuer Credit Rating Categories from “aa” to “ccc” include Rating Notches to reflect a gradation within the category to indicate whether credit quality is near the top or bottom of a particular Rating Category. Rating Notches are expressed with a “+” (plus) or “-” (minus). Best’s Short-Term Issuer Credit Rating (Short-Term ICR) Scale Rating Categories Rating Symbols Category Definitions StrongestAMB-1+Assigned to entities that have, in our opinion, the strongest ability to repay their short-term financial obligations. Outstanding AMB-1Assigned to entities that have, in our opinion, an outstanding ability to repay their short-term financial obligations. SatisfactoryAMB-2Assigned to entities that have, in our opinion, a satisfactory ability to repay their short-term financial obligations. AdequateAMB-3 Assigned to entities that have, in our opinion, an adequate ability to repay their short-term financial obligations; however, adverse industry or economic conditions likely will reduce their capacity to meet their financial commitments. QuestionableAMB-4 Assigned to entities that have, in our opinion, questionable credit quality and are vulnerable to adverse economic or other external changes, which could have a marked impact on their ability to meet their financial commitments. Long- and Short-Term Issuer Credit Non-Rating Designations Designation Symbols Designation Definitions dStatus assigned to entities (excluding insurers) that are in default or when a bankruptcy petition or similar action has been filed and made public. e Status assigned to insurers that are publicly placed, via court order into conservation or rehabilitation, or the international equivalent, or in the absence of a court order, clear regulatory action has been taken to delay or otherwise limit policyholder payments. fStatus assigned to insurers that are publicly placed via court order into liquidation after a finding of insolvency, or the international equivalent. s Status assigned to rated entities to suspend the outstanding ICR when sudden and significant events impact operations and rating implications cannot be evaluated due to a lack of timely or adequate information; or in cases where continued maintenance of the previously published rating opinion is in violation of evolving regulatory requirements. nrStatus assigned to entities that are not rated; may include previously rated entities or entities that have never been rated by AM Best. Rating Disclosure: Use and Limitations A Best’s Credit Rating (BCR) is a forward-looking independent and objective opinion regarding an insurer’s, issuer’s or financial obligation’s relative creditworthiness. The opinion represents a comprehensive analysis consisting of a quantitative and qualitative evaluation of balance sheet strength, operating performance, business profile and enterprise risk management or, where appropriate, the specific nature and details of a security. Because a BCR is a forward-looking opinion as of the date it is released, it cannot be considered as a fact or guarantee of future credit quality and therefore cannot be described as accurate or inaccurate. A BCR is a relative measure of risk that implies credit quality and is assigned using a scale with a defined population of categories and notches. Entities or obligations assigned the same BCR symbol developed using the same scale, should not be viewed as completely identical in terms of credit quality. Alternatively, they are alike in category (or notches within a category), but given there is a prescribed progression of categories (and notches) used in assigning the ratings of a much larger population of entities or obligations, the categories (notches) cannot mirror the precise subtleties of risk that are inherent within similarly rated entities or obligations. While a BCR reflects the opinion of A.M. Best Rating Services, Inc. (AM Best) of relative creditworthiness, it is not an indicator or predictor of defined impairment or default probability with respect to any specific insurer, issuer or financial obligation. A BCR is not investment advice, nor should it be construed as a consulting or advisory service, as such; it is not intended to be utilized as a recommendation to purchase, hold or terminate any insurance policy, contract, security or any other financial obligation, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. Users of a BCR should not rely on it in making any investment decision; however, if used, the BCR must be considered as only one factor. Users must make their own evaluation of each investment decision. A BCR opinion is provided on an “as is” basis without any expressed or implied warranty. In addition, a BCR may be changed, suspended or withdrawn at any time for any reason at the sole discretion of AM Best. For the most current version, visit www.ambest.com/ratings/index.html. BCRs are distributed via the AM Best website at www.ambest.com. For additional information regarding the development of a BCR and other rating-related information and definitions, including outlooks, modifiers, identifiers and affiliation codes, please refer to the report titled “Guide to Best’s Credit Ratings” available at no charge on the AM Best website. BCRs are proprietary and may not be reproduced without permission. Copyright © 2023 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED. Version 12171974BEST’S REVIEW • JANUARY 2023 Corporate Changes LIFE/HEALTH State Actions Bankers Life Insurance Co. (AMB# 008448), Durham, NC, USA. This company was placed into insolvent liquidation on Nov. 21, 2022. Colorado Bankers Life Insurance Co. (AMB# 008502), Durham, NC, USA. This company was placed into insolvent liquidation on Nov. 21, 2022. North Carolina Mutual Life Insurance Co. (AMB# 006835), Durham, NC, USA. This company was placed into insolvent liquidation on Oct. 31, 2022. Time Insurance Co. (AMB# 007126), Madison, WI, USA. This company was placed into insolvent liquidation on Sept. 1, 2022. PROPERTY/CASUALTY Name Changes Digital Affect Insurance Co. (AMB# 020646), New York, NY, USA. This company changed its name to Coalition Insurance Co. on Sept. 15, 2022. Discover Specialty Insurance Co. (AMB# 011763), Hartford, CT, USA. The name of this company was changed to Travelers Specialty Insurance Co. on Sept. 1, 2022. Illinois State Bar Association Mutual Insurance Co. (AMB# 011236), Chicago, IL, USA. This company changed its name to ISBA Mutual Insurance Co. on July 18, 2022. Saskatchewan Mutual Insurance Co. (AMB# 085787), Saskatoon, SK, Canada. This company changed its name to Sandbox Mutual Insurance Co. on Nov. 1, 2022. State Action FedNat Insurance Co. (AMB# 000711), Sunrise, FL, USA. This company was placed into insolvent liquidation on Sept. 27, 2022. Domiciliary Changes Catlin Specialty Insurance Co. (AMB# 010092), Oklahoma City, OK, USA. This company redomesticated to Oklahoma from Delaware on Aug. 23, 2022. Obsidian Pacific Insurance Co. (AMB# 021080), Wilmington, DE, USA. This company redomesticated to Delaware from Minnesota on Sept. 30, 2022. Progressive Property Insurance Co. (AMB# 013878), St. Petersburg, FL, USA. This company redomesticated from Florida to Louisiana on April 1, 2022. BR State Actions and Name and Domiciliary Changes Time Insurance, Progressive Property and Catlin Specialty are among the North American life/health and property/casualty insurers that have experienced a corporate change.75 BEST’S REVIEW • JANUARY 2023 Preferred Publisher Program AM Best’s Preferred Publisher Participants In Other News ... A roundup of news from publishers around the globe. Access to some sites may require registration or subscription. Artemis | www.artemis.bm Cat bond fund recovery dented by spread widening price adjustments Asia Insurance Review | www.asiainsurancereview.com India: Finance Ministry proposes composite licence for insurers Benefits Pro | https://www.benefitspro.com/ Workers looking for options amid growing concerns over inflation, recession Bermuda: Re+ILS | https://www.bermudareinsurancemagazine.com/ New era: insurers for decarbonisation Business Insurance | www.businessinsurance.com State appeals court upholds pro-policyholder COVID ruling Captive Insurance Times | https://www.captiveinsurancetimes.com/ An agile approach to captive ownership Captive International | https://www.captiveinternational.com/ Fraud in the blockchain space Carrier Management | www.carriermanagement.com Falling Short: Insurers Not Realizing Operations Modernization Plans Claims Journal | https://www.claimsjournal.com/ Pickleball Explosion in Florida Creating New Hits and Misses for Insurers, Agents Claims Magazine | https://www.propertycasualty360.com/claims- magazine/current-issue/ The biggest factors impacting home insurance heading into 2023 Commercial Risk | https://www.commercialriskonline.com/ How exposed is your captive to inflation? Commercial Risk Europe | https://www.commercialriskonline. com/cr-europe/ EU set to impose bloc-wide criminal penalties for breaching Russia sanctions Emerging Risks | https://emergingrisks.co.uk/ Ethnic workers looking to leave as financial services failings highlighted Forbes Advisor | https://www.forbes.com/advisor/ How To Prepare For The Next Hurricane Global Reinsurance | https://www.globalreinsurance.com/ Mixed picture for global reinsurers YTD results Global Risk Manager | https://www.commercialriskonline.com/ global-risk-manager/ More work needed to promote insurance sector inclusivity, say panellists Health Payer Specialist | https://www.healthpayerspecialist.com/ Troubled Payer Takes Step To Keep Key Executives Inside P&C | https://www.insidepandc.com/ Q3 statutory loss data is out: Trends reflect impact of inflation and Ian Insurance & Investment Journal | https://insurance-portal.ca/ Employment Insurance sickness benefit period increasing Insurance Age | https://www.insuranceage.co.uk/ Under 20% of firms meet FCA expectations on attestation records Insurance Asset Risk | https://www.insuranceassetrisk.com/ EIOPA open to the idea of a transition risk capital charge Insurance Insider | https://www.insuranceinsider.com/ Lloyd’s confirms Blueprint Two cost remains unchanged at £300mn Insurance Post | https://www.postonline.co.uk/ Analysts report decrease in cyber attacks so far in 2022 Insurance Times | https://www.insurancetimes.co.uk/ Briefing: Autumn Statement is not all good news for insurers Intelligent Insurer | https://www.intelligentinsurer.com/ UK insurers talk the talk on fair pricing, but can’t put proof to paper Life Annuity Specialist | https://www.lifeannuityspecialist.com Salary Disclosure Law Spurs ‘Insane’ Ranges as Lawyers Get Ready Middle East Insurance Review | https://www.meinsurancereview.com/ UAE: Central Bank tightens supervision of insurers’ funds with intermediaries National Underwriter P/C | https://www.propertycasualty360. com/national-underwriter-property-casualty/issue-gallery The P&C industry’s most common compliance, conduct complaints P&C Specialist | https://www.pandcspecialist.com/ PC Carriers Ranked by Most (And Least) Stressed Employees Reinsurance News | https://www.reinsurancene.ws/ Insurance bill for Australian storms & floods reaches $12.3bn: ICA The Insurer | https://www.theinsurer.com/ Postcard from Baden-Baden: new battlegrounds emerge ahead of 1.1 ThinkAdvisor | https://www.thinkadvisor.com/ How Mutual Fund Revenue Sharing Hurts Retirement Savers Thompson’s World Insurance News | http://thompsonsnews.com/ National Adaptation Strategy released Trading Risk | https://www.trading-risk.com/ Cat bond investors push back on terms as hard market bites Publications and sites listed above are participants in AM Best’s Preferred Publisher Program. www.ambest.com/sales/preferredpublisher76BEST’S REVIEW • JANUARY 2023 Insurance Professional Resources How Insurance Professionals Are Responding to Evolving Cyberthreats Additional coverage includes new Marshall Dennehey director of marketing. Duc Nguyen is the managing partner of digital forensics and cyber claims at United Litigation Discovery. Nguyen, who has more than 20 years of professional experience in software development, criminal investigations, insider threat investigations, cyber claims and litigation support, spoke with John Czuba, managing editor of Best’s Insurance Professional Resources, about the challenges of handling cyber claims. Following is an edited transcript of the interview. There have been so many changes in the past couple of years since COVID hit, and everyone being remote for the better part of almost two years now. What changes have you seen as a result in cyber over the past few years? These are really metric driven. These changes are shocking and eye-opening. Go back to about 2015, and you have cyber claims that weren’t scaling above a million [dollars] in damages. From about 2015, there’s about a 400-plus increase in percentage of incidents having at least a million [dollars] in reported losses. At the same time, there’s been a shift in the attack vectors, changing from malware sites, to now the dominant attack vector has made headlines all over the place, but has been predominantly phishing attacks. That’s switched over, because if you think about it, one of the easiest ways to enter into an organization is emails. Everybody has emails, and you just send out email blasts with phishing content in there, and someone’s bound to click on it. What do insurance carriers in particular need to focus on today related to risk management? This is interesting. There’s been a lot of effort in developing robust assessments for the application process. You go back several years, and the typical application process was just really check boxes, but not too many questions. Now, you’re seeing very specific questions about types of cybersecurity products and technologies, whether they’re in place at the interested party trying to get insurance. There needs to be more of that, building out this robust assessment, maybe even bringing on board third-party vendors to help out with that assessment to get a full picture of what kind of risk the carrier is looking to take on. Cyber has really changed and evolved since 2015. How has cyber coverage changed in that timeline as well? There was a time when the coverages were light, they were more geared toward providing just a few services. Now, you’re seeing very specific services being offered, like investigations and additional support from outside vendors to help with companies getting an audit in place for PCI [Payment Card Industry] compliance. Then also, the recertification to come back into compliance with regulatory needs and whatnot for PCI compliance concerns. Those weren’t traditionally in policies that I’ve seen a few years back, but now you’re starting to see coverages and language in there for very specific items. There’s even more defined language now about limiting what’s being covered. Whereas there would be vague language about data recovery or data restoration coverage, now I’m seeing language where it’s very specific to only restoring data from backup tapes and backup media, whatever your old backup might have been. They’re limiting the data restoration to just that effort right there, and not … If you read it black and white, it doesn’t even talk about recovering data that’s been impacted by the cyber event. So encrypted data, lost data, or anything like that, it’s very defined to backup tapes. When carriers are looking to protect themselves from cyber situations, what’s important for them to focus on in the claims process now? What I’ve seen that’s been helpful has been starting an open dialogue with the insured brokers that will keep the claims process moving along in an amicable fashion, being able to attack only low-hanging fruit, the items that aren’t contentious, and coming up with payment decisions early on, and at a frequent enough cadence that it keeps the process moving along. Then tackle the more contentious issues along the way as well but leave that for a more robust conversation. There doesn’t need to be a delay in the items that are clearly supported, clearly within claims coverage categories, appropriate and necessary, reasonable for that type of incident. Those are the payments that should be made early and often enough that it keeps everything moving along through the claims process. What do you see for the future of cyber claims? I’d like to see the movement toward what you see in the auto coverage right now, where there are various apps. Different carriers have the apps that monitor driving behavior, and it can help with discounts and premiums. That might not work for cyber claims, but what might work is maybe a cadence to bring in some kind of assessment. Whether that’s quarterly, half year, maybe just the annual, so they can come back to renew. Have that metric there that, one, it could help with the renewal process, but, two, there might be services that the carrier has in their vendor pool, in their network, that a smaller company at the insured side might not be Duc Nguyen John Czuba is managing editor of Best’s Insurance Professional Resources. He can be reached at john.czuba@ambest.com.77BEST’S REVIEW • JANUARY 2023 aware of because [of] budgeting reasons. They might not have a full, robust IT department, but there might be services and resources available from the carrier side within their pool of resources there that they could offer. That assessment would shine a light on a lot of issues or deficiencies that somebody seeing that type of information would be able to say, “Hey, we could bring somebody on board” or “Here are a list of vendors that fit that need and could help you out.” Again, if it’s coming from the carrier side, one, it’s a preferred vendor. They’ve been vetted, and they may even come with preferential rates. I’d like to see something like that come into the future of cyber claims. BR Marshall Dennehey Hires New Director of Marketing and Business Development Jennifer L. Becker has joined Marshall Dennehey as director of marketing and business development. Becker is a highly accomplished legal marketing professional with nearly 15 years of communications and business development experience. She most recently worked at Fox Rothschild LLP, where she assisted various practice groups of the firm with their business development and marketing efforts. Prior to Fox, she spent seven years at Stradley Ronon Stevens & Young, first as a communications manager and then business department manager. She also has worked at the global Am Law 100 firms Skadden and Patton Boggs. Becker replaces Joseph S. Goldshear, who has served as the firm’s marketing director for 14 years. He will assist in her transition to department leadership and then will assume a senior marketing consultant role in January prior to his planned retirement in 2024. “We feel lucky to bring such talent to the position,” said G. Mark Thompson, Marshall Dennehey’s president and CEO. “Jen’s background in law and communications, and her depth of experience working at some of the most prestigious law firms in the world, will enable her to build upon Joe’s legacy and bring our marketing initiatives and endeavors to the next level.” Becker holds a Juris Doctor from William & Mary School of Law where she was a member of the William & Mary Law Review. She is additionally a graduate of Syracuse University’s S.I. Newhouse School of Public Communications where she earned a B.S./B.A. in Public Relations and Political Science. A member of the Legal Marketing Association, she is a former president of the Philadelphia chapter of Law Firm Media Professionals. Marshall Dennehey is a civil defense law firm with nearly 500 attorneys in 19 offices in seven states. Jennifer L. Becker FIND THE ATTORNEY, ADJUSTER OR EXPERT SERVICE PROVIDER THAT FITS YOUR NEEDS WITH BEST’S INSURANCE PROFESSIONAL RESOURCES 22.BIPR064B Our Insight, Your Advantage ™ Learn More: www.ambest.com/professionalresources www.ambest.com • (908) 439-2200 For information about these firms and Best’s Insurance Professional Resources, visit www.claimsresource.ambest.com/ search/DirectoryCenter.aspx Best’s Insurance Professional Resources The following company is a newly qualified member in Best’s Recommended Expert Service Providers - Forensic Engineering Experts. Central State Forensic Forensic Engineering 9891 Montgomery Road, Suite 286 Cincinnati, Ohio, USA 45242 513-310-6202 AM Best Audio Visit bestsreview.ambest.com to listen to the interview with Duc Nguyen.Next >