Should you’ve ever tried to find out about selecting one of many finest life insurance coverage corporations, you’ve in all probability heard in regards to the significance of economic energy scores when choosing a coverage. Nonetheless, discovering an organization’s monetary energy 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 scores to compile monetary energy scores from main score businesses. Nonetheless, when you’re questioning, “What’s a COMDEX score on life insurance coverage?” you’re not alone.

Preserve studying under to find out about COMDEX scores, what they imply, the way to discover them, and why it’s essential to know monetary energy scores earlier than shopping for a coverage.

What are COMDEX scores for all times insurance coverage corporations?

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

It averages the scores from a number of the largest monetary energy score businesses, together with A.M. Greatest, Moody’s, Fitch, and Commonplace & Poor’s. Subsequently, an insurance coverage firm will need to have scores from at the very least two of those businesses earlier than receiving a COMDEX score.

By utilizing the opposite businesses’ scores, 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 buyers to know 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 scores calculated?

COMDEX scores are comparatively simple to calculate, however on a regular basis shoppers almost certainly 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 technique.

Subsequently, COMDEX scores are calculated by EbixLife utilizing VitalSigns software program. The scores are recalculated each few weeks or extra typically for large insurers. EbixLife can compile tons of knowledge from every company to see which percentile an insurance coverage firm matches into in response to 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 Commonplace & 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 scores essential?

Whenever 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 offers your life insurance coverage beneficiaries with the dying profit you paid for. Subsequently, if you’re procuring round, it may be useful to analysis an organization’s monetary energy earlier than shopping for from them.

The businesses listed above (A.M. Greatest, Moody’s, Fitch, and Commonplace & 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 know the scores from every of those businesses. It could even take a subscription to entry the data obligatory to find out an organization’s monetary energy. Alternatively, the COMDEX score is simpler to know, compiles knowledge from a number of sources, and is straightforward to search out on-line.

How can I determine an organization’s COMDEX score?

Sadly, VitalSigns is offered 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 prospects, it’s not broadly out there.

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 scores,” and also you’re prone to discover a couple of completely different lists which were up to date not too long ago.

Who has the very best COMDEX score?

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

As we talked about above, COMDEX scores can change each few weeks. Subsequently, it might be helpful to debate any adjustments with an insurance coverage agent that has entry to present studies.

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.