OLDWICK, N.J : A.M. Best Co. has released the criteria report, “Risk Management and the Rating Process.”

The criteria is updated to include additional events that have contributed to the increased level of risk and uncertainty for the insurance industry, as well as a more detailed explanation of how an insurer’s risk profile and risk management capability impact the rating process.

The impact of risk management on an insurer’s rating is based upon its risk profile and risk management capability relative to that risk profile.

Additionally, insurers are expected to demonstrate that their risk management processes are appropriate for their risk profiles.

These updates are part of A.M. Best’s continual review of its rating methodology and are not considered material or expected to affect ratings.