A Probit Analysis of Best Ratings
In 1991, the A.M. Best Company changed the schedules and procedures for assigning ratings to property-liability insurers. An explanation of this change is of interest to consumers, regulators, and management. This study uses ordered probit to test for a downshift in the average ratings. The results of the analysis show that there has been a movement toward lower ratings and that the return on surplus is more important with the new ratings. The results are robust with respect to alternative estimation procedures.
Volume (Year): 21 (1998)
Issue (Month): 1 ()
|Contact details of provider:|| |