An underwriter is the company that stands behind the travel insurance provider and their products. Ultimately, the underwriter is the financial backer of the travel insurance provider.
The underwriter of a travel insurance company has multiple key responsibilities and roles when it comes to building travel insurance plans, determining who and what is covered, and ultimately providing the financial support for the insurance. Specifically, the underwriter determines the following:
The underwriter matters because they are the ultimate decision-maker and the financial backer of the travel insurance product you purchase. If you purchase from an unknown or less reputable underwriter, you run the risk of a claim being denied fraudulently or due to financial reasons. On the other hand, a reputable underwriter guarantees your travel insurance claim will be handled fairly and honestly.
To determine if an underwriter is credible and financially stable, Squaremouth uses AM Best Ratings. AM Best is a global credit rating agency that specializes in the insurance industry. They have been rating insurance providers based on their financial health for more than 125 years. AM Best rates providers using their own scale, which ranges from A++ (Superior) to D (Poor).
You should only consider buying a plan if the provider and underwriter have a rating of at least an A (Excellent). Every travel insurance provider available through Squaremouth.com has an AM Best Rating of an A (Excellent) or higher. Learn more about how to use AM Best Ratings to evaluate underwriters when buying travel insurance.