“The rating process is mandatory for insurers in New Zealand but not for underwriting agencies such as ourselves,” noted Chaplin. “Rating for reinsurers and insurers gives the independent validation of an insurance company’s strength and quality, essentially, and it’s never been done for underwriting agencies before… I saw this as a way for Delta to be one of the first in the world to be given the equivalent of a rating that insurers get, which is called a performance assessment.
“So, we’re not rated because it’s not our capital, but we’re given a performance assessment which assesses the quality of our business. We thought it would be very important to get this assessment for those who buy our policy, giving them the confidence in the quality of our financial condition, our controls, our governance, our underwriting capabilities, etc.”
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Aside from excellent, AM Best’s other categories for DUAEs are exceptional, strong, fair, and weak. The rigorous assessment process examines underwriting capabilities, governance and internal controls, financial conditions, organizational talent, as well as depth and breadth of relationships. According to Chaplin, Delta is only the second globally to get an excellent assessment.
“It’s all about trust and confidence,” the COO told Insurance Business. “All of our insurance business comes through professional insurance brokers, and it is very important to brokers to assess the quality and the security of the carriers who are providing coverage for their clients. So, with us now having this performance assessment, we believe that this will give our brokers and our customers a great deal more confidence and certainty.
“Delta is the first underwriting agency in Asia-Pacific to receive a performance assessment. So, this is very important to us to be really a