Gateway Insurance Company Assigned Financial Stability Rating (FSR) of A by Buckle
Buckle has announced that its licensed carrier, the Gateway Insurance Company, has been assigned the Financial Stability Rating (FSR) of A, Exceptional, from Demotech, Inc.
JERSEY CITY, N.J: Buckle is a tech-enabled financial services company. The organization has announced that its licensed carrier, the Gateway Insurance Company, has been assigned the Financial Stability Rating (FSR) of A, Exceptional, from Demotech, Inc.
In June, Buckle had declared the acquisition and recapitalization of Gateway and its 47 state insurance licenses. With its digital fronting strategy, Buckle has extended the insurance coverage that consists of transportation network companies (TNCs), traditional taxi, limo, and livery companies utilizing Lyft, Uber, and other apps.
According to Marty Young, co-founder of Buckle, "A Demotech rating enables us to continue the rapid advance of our digital insurance strategies in new and exciting ways.We purchased, capitalized, seasoned, and relaunched Gateway all in one day. Two months later, we are successfully writing taxi and limo policies in 33 states with our partner, Anchor Group Management, Inc. and plan to expand into a total of 40 in the near term."
Such a Financial Stability Rating (FSR) level is allocated to the insurers who own extraordinary financial stability. It is connected to the maintenance of positive surplus related to policyholders, liquidity of invested assets. It is an acceptable level of financial leverage, reasonable loss, and loss adjustment expense reserves (L&LAE), and realistic pricing.
Moreover, FSRs have summarized Demotech’s opinion of an insurer's financial stability irrespective of general economic conditions or the phase of the underwriting cycle. FSRs also use statutory financial data based on insurance accounting principles prescribed or authorized by the National Association of Insurance Commissioners (NAIC). From 1989, FSRs of A or better have been recognized by the prominent participants in the secondary mortgage market.