Who is Weiss Ratings? 

Weiss Ratings has been in operation since 1971, but in the realm of structured settlements, A.M. Best ratings, along with those from Moody’s, Standard & Poor’s, and Fitch (formerly Duff & Phelps), are more commonly referenced. Additionally, other Tier 1 ratings, such as those from Kroll Bond Rating Agency, LLC (KBRA), are occasionally noted but less frequently associated with life insurance companies issuing structured settlement annuities.

Weiss | First Insurance Rating Organization to issue Independent Financial Strength Ratings for Life and Health Insurance Companies

My first recollection of the elevation of Weiss Ratings (formerly known as Weiss Research) was during a period of heavy criticism of the larger rating agencies during the Executive Life era. Martin Weiss, the company founder testified before Congress and the Senate in 1991 and 1992.

Weiss ratings became the first insurance rating organization to issue independent financial strength ratings for life and health insurance companies. 

The Wall Street Journal reported that the Weiss stock ratings ranked #1 in profit performance, ahead of ratings by Goldman Sachs, JPMorgan, Merrill Lynch, Morgan Stanley, Standard & Poor’s, and all other firms covered.

In 2004, a U.S. Government Accountability Office (GAO) found that the Weiss insurance company ratings beat those of Moody’s, Standard & Poor’s, and A.M. Best by at least three to one in accuracy.

Ratings are helpful and important but not exclusive factor in the insurance decision making process (which includes structured settlement annuities).

Helpful links

• Rating Agencies (naic.org)
• Master NAIC Designation and Category grid - 2020.xlsx. Note that Weiss Ratings is not on the NAIC grid. That doesn't mean you should exclude them as part of your evaluation and consideration of any insurance placement, including the placement of structured settlement annuities.

Why Is Weiss Ratings Not on the NAIC Grid?

I asked the NAIC for a response to this question on January 9, 2024 7:05pm,through their email portal

"Hi,

I am researching why Weiss Ratings is not on the NAIC grid?  It is my understanding that Weiss does not charge for insurer ratings and claims to be non conflicted.

Thank you in advance for your response".

Here was the NAIC response received January 10, 2024:

"Only ratings from SEC recognized nationally recognized statistical ratings organizations (NRSRO) that have requested and been approved by the Valuation of Securities (E) Task Force to be a credit rating provider (CRP) to the NAIC are on the grid for translation to an NAIC Designation"

Insurance Companies - Weiss Ratings