OLDWICK, N.J.--(BUSINESS WIRE)--In this episode of AMBestTV, at the St. Joseph's University's InsurTech Symposium, held in Philadelphia, PA, John Andre, managing director, AM Best, discusses the credit rating agency’s approach to innovation, but added that rating evaluations also focus on items that include performance, business profile, risk management and capitalization. Click on http://www.ambest.com/v.asp?v=andre220 to view the entire program.
Andre highlighted how innovation and disruption have similar qualities.
“They both kind of swim together, because of the evolution. It is a changing world, and the industry is rising up and facing the challenges of the changing environment,” said Andre. “I think it is kind of a perfect combination of the people who are designing these products and the tools that the risk bearers can use. In my opinion, it is a good marriage of the combination of both sides.”
Andre also addressed AM Best’s draft criteria on innovation.
“In 2020, AM Best is going to update its Best Credit Rating Methodology to reflect how AM Best will incorporate innovation more formally into its rating process. AM Best has always looked at innovation; however, this will make it a more formal approach as part of the company’s business profile.”
Additionally, Andre said he believes that companies are going to have to find ways to distinguish themselves in order to survive in the 21st Century.
“It is just not about your capital and performance today, but about your performance, business profile, enterprise risk management, and ultimately, capitalization going forward.”
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