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An unrated insurer does not carry an insurer "Financial Strength Rating" as provided by international rating agencies. The rating provides an assessment of the financial strength of an insurer on a scale A – C. An A rated insurer indicates an excellent ability to pay claims while a C rating means the insurer may be less able to pay claims. Unrated insurers could pose a greater risk because they have not been rated in terms of their financial strength and some foreign insurers are not subject to UK or EU insurance regulations.

In the UK it is not a legal requirement for an insurer to be rated, and brokers (like us) are not restricted to only offer products and services from rated insurers. There are many benefits of using an unrated insurer such as they can often offer more competitive rates than rated insurers and sometimes they offer cover, owing to your personal circumstances, that a rated insurer is unable.

Usually you will find that an un-rated insurer is regulated by the PRA (Prudential Regulatory Authority) and the FCA (Financial Conduct Authority) – these are the same regulators of rated insurers.

Should an unrated insurer fail, which is a rare occurrence, the FSCS (Financial Services Compensation Scheme) will step in if the insurer is a member and pay for claims that an unrated insurer cannot.

For many of our customers’ un-rated insurers are a good option and on the rare occasion, the only option. 

We endeavour to place your business with insurers who have adequate means to meet their obligations but cannot guarantee the solvency of any insurer and we shall not be liable for losses suffered by you in the event of the insolvency of an insurer.