S&P Responds to Industry Criticism of New Ratings Criteria
After receiving feedback from SFA and the industry, S&P Global confirmed on May 9 that it will delay any immediate changes to its criteria for rating insurance and reinsurance companies which includes rating inputs of bonds and loans, reinsurance counterparties and deposits with credit institutions. Industry publications and reports had put the impact of the proposed changes at 10% of insurers and reinsurers that would be affected. The announcement came after significant industry and agency response on S&P’s request for comment, and it states that before finalizing new criteria as soon as the end of the year, they will seek alternative ways to ‘assess the potential credit risk associated with these types of exposures.’ Read more.