Insurance Ratings

GCR's Criteria For Rating Short Term, Life and Composite Insurance Companies

Insurance Ratings

Contact Details

Sector Head: Marc Chadwick
T: +27 11 784 1771
Email: .(JavaScript must be enabled to view this email address)


Sector Head: Yvonne Mujuru
T: +27 11 784 1771
Email: .(JavaScript must be enabled to view this email address)

Overview

Global Credit Rating Co. (“GCR”) is the leading rating agency in Africa , with particular expertise in claims paying ability ratings. Overall, GCR accounts for approximately 81% of all claims paying ability ratings accorded on the African continent and boasts a ratings coverage ratio of up to 95% in certain markets.

Methodologies

Please click here for a Glossary of Terms
                               
Global Master Criteria for Rating Short Term Insurance and Reinsurance Companies, updated July 2017
GCR’s claims paying ability (“CPA”) ratings are accorded to short term insurers and reinsurers, and give an independent opinion of an entity’s ability to meet policyholder and assumed reinsurance obligations, excluding funds where investment or other risk rests with the policyholder through a contractual agreement. The CPA rating is the basis for any other ratings accorded to insurance and reinsurance companies.
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Criteria for Rating Insurers’ Debt and Hybrid Equity Instruments, updated July 2017
The CPA rating accorded to an insurer serves as the anchor rating for related credit assessments. Ratings are subsequently assigned to an organisation’s debt or preferred stock issuances through the recognition of the claims prioritisation due to legal, regulatory or contractual parameters.
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Criteria for Rating Cell Captive Insurers, updated July 2017
The analysis of cell captive insurers incorporates the overarching key rating factors detailed in the Global Master Criteria for Rating Short Term Insurance and Reinsurance Companies (“Criteria for Rating Short Term Insurance Companies”), while also addressing the distinctive characteristics surrounding the evaluation of cell captive entities, with particular reference to the business model and nature of the cell captive structure.
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Criteria for Rating Newly Established and Start-Up Insurance Companies, updated July 2017
The scope of this methodology extends to all types of newly formed insurance entities. This report should also be read in conjunction with the Global Master Insurance Criteria available on GCR’s website.
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Global Master Criteria for Rating Long Term Insurance and Reassurance Companies, updated July 2017
GCR’s Financial Strength (“FS”) ratings are accorded to companies that conduct life insurance business. The ratings give an independent opinion of an entity’s ability to meet policyholder and assumed reinsurance obligations, excluding funds where investment or other risk rests with the policyholder through a contractual agreement. The FS rating is the basis for any other ratings accorded to insurance and reinsurance companies.
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Criteria for Rating South African Medical Schemes, updated July 2017
Incorporating both quantitative and qualitative factors, GCR’s ratings reflect an evaluation of the organisation’s current financial position, as well as how that may change in the medium term. In its quantitative analysis, GCR focuses on fundamentals, analysing an institution’s historical and current financial performance. This is used as a foundation for developing expectations regarding the institution’s future financial performance and risk profile, under both normal and stressed operating scenarios. Emphasis is also placed on assessing the operating environment (including both economic and industry risk), strategy, market position, diversification, as well as corporate governance, strategic and risk management, all of which also form part of the qualitative analysis. Download

Articles of Interest

Ghana short term insurance: poised for next level development.
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The South African short term insurance industry overview 2013.
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The South African short term insurance industry overview 2012.
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SA credit insurers keep a close eye on Eurozone developments.
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New solvency requirements already being enforced.
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The South African short term insurance industry overview 2011.
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The South African short term insurance industry overview 2010.
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