AM Best often cites lack of geographic diversity as a reason for a lower rating. Expanding your company’s geographic footprint will help spread risk and thereby improve your rating.
A certificate of authority is a license issued by the state to an insurance company
that allows the company to conduct business in that state. Every insurance company requires a CoA for each state in which they wish to do business.
We analyze the Company’s financial profile, management experience, and operational procedures in order to provide a strategic recommendation as to what states and regions would be available for expansion, and in what order to help ensure prompt success.
The two major obstacles are 1) lack of required seasoning and 2) inadequate capitalization.
We have had repeated success in overcoming these issues for most clients.
Contact us to learn how J Lash & Company can help your company avoid common pitfalls and provide a great return on investment.
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