An insurance rating agency is coming out with a new system for rating insurers.
Fitch Ratings, New York, has released a draft of its new Prism rating model and is asking insurers, investors, brokers, investment bankers, regulatory bodies and other outside individuals and organizations to comment by July 10.
The Prism model uses "stochastic modeling" techniques to help analysts estimate the effects of hundreds or thousands of different hypothetical scenarios on an insurer or reinsurer's capital needs.
