AKG Financial Strength Assessment Reports – 2017 Changes
In September 2017, some significant improvements to AKG's Financial Strength Assessment Reports were introduced. Designed for the benefit of report users, the changes consist of improvements to the design and format of, and information contained in these company level financial strength assessment reports.
Roll out of Reports
Reports issued in September 2017 and the rolling annual update of AKG assessments thereafter will be delivered in this new design and format.
In summary, these improvements:
- Take account of new statutory reporting information from insurance companies, under Solvency II, where appropriate
- Align report sections and navigation to better reflect the most important aspects considered in financial strength assessment and rating; drilling down on distinct 'operational', 'strategic' and 'financial' areas at the entity level, at which ratings continue to be given
- Give greater prominence to AKG's key assessment comments, improving at a glance readability and better communicating the background to specific ratings
- Update the supporting ratings to specifically indicate assessment for 'Business Performance' replacing 'Annual Review', shown previously
- Enhance identification of the reports with the assessment sectors covered (Provider, Offshore, Platform and DFM), for further clarity and to emphasise AKG's comparative sector approach.
What does the new format look like?
A specimen example of the new format report is available here.
The specimen is a fictitious example of a participatory assessment report for a life insurance company within the Provider sector. (Note: There are some variations by sector and company type in terms of data tables displayed and non-participatory assessment reports show a subset of information).
Consistency in AKG approach retained
The changes do not alter:
- The assessment process and our interaction with companies during the assessment review and liaison with other report users
- AKG’s approach to Financial Strength Ratings (for which further background is available at www.akg.co.uk/information/financial-strength)
- The AKG Financial Strength Ratings themselves, their scale and their use www.akg.co.uk/information/ratings
- The assessment and rating peer groups www.akg.co.uk/information/sectors.
Will all old format reports be withdrawn immediately?
For the first year or so after the change, a diminishing number of reports issued prior to September 2017 in the old format will remain in place, until each such report has been superceded by an equivalent report in the new format.
How do I know whether I am buying a report in the old format or the new format?
For simplicity, on the Purchase page on the AKG website all available reports will be listed under the new Report Category names, so that users do not have to look for a report in 2 different places. Users will be able to tell which format the report is in from its Issue Date.
Any report issued after 1 September 2017 will be in the new format, and branded with the new Report Category name.
Any report issued before 1 September 2017 will be in the old format, and branded with the old Report Category name.
|New Report Category||Old Report Category|
Issued after August 2017
Issued before September 2017
|Provider Financial Strength Assessment Reports||Company Profile & Financial Strength Reports|
|Offshore Financial Strength Assessment Reports||Offshore Profile & Financial Strength Reports|
|Platform Financial Strength Assessment Reports||Platform Profile & Financial Strength Reports|
|DFM Financial Strength Assessment Reports||DFM Profile & Financial Strength Reports|
Future issues of AKG Update
AKG’s Update newsletter will continue to roundup report releases and rating activity, with the assessment sectors now also being shown in place of the old report series names, for the report releases and the rating activity subheadings consistent with this too.
If you have any questions on these improvements please do contact us.