"Which insurance company is the most reliable?" has no single answer. Reliability means two things: the company will still be able to pay years from now, and it will pay fairly and on time when you file a claim. Regulators and rating agencies publish enough information to judge both. Here is a step-by-step method.
Step 1: Confirm the company is licensed in your state
Insurance is regulated by the states, and a company must be licensed (admitted) in your state to sell most standard policies there. The NAIC recommends checking your state insurance department's website to confirm a license. Licensed status matters for more than paperwork: it brings the company under the state's solvency supervision and, in most cases, under the state guaranty association (Step 5). Some specialized risks are placed with surplus lines (nonadmitted) insurers, which are legal but are not covered by guaranty funds, so ask which type of carrier you are being offered.
Step 2: Understand the capital rules regulators use
US regulators measure an insurer's capital against its risks using the NAIC's risk-based capital (RBC) system. A life RBC formula was adopted in 1992 and implemented in 1993; the property/casualty model act followed in 1993 and the health model act in 1998. The ratio compares a company's total adjusted capital with a regulatory minimum based on its size and the riskiness of its assets and operations.
| RBC ratio | What happens (per the NAIC) |
|---|---|
| 300% and above | No regulatory intervention needed |
| 200%–300% | Subject to a trend test; possible intervention if triggered |
| Below 200% | Escalating actions, from an action plan to a regulatory takeover of management |
| Below 70% | The regulator is obligated to take over the company |
The NAIC stresses that RBC is a minimum standard and is not intended to rank insurers. Consumers rarely see individual RBC ratios, but the framework is why most problems are caught early.
Step 3: Check financial strength ratings
Ratings from AM Best, S&P, Moody's and Fitch are the most accessible indicator of an insurer's ability to pay. On AM Best's scale, A++ and A+ mean "superior" and A and A- "excellent," while ratings of B and below are described as vulnerable to adverse changes. Check the rating of the exact company named on your policy and its outlook. Our guide to insurer financial strength ratings compares all four scales.
Step 4: Look at complaint records
Financial strength does not tell you how a company treats customers. The NAIC's Consumer Insurance Search tool provides information on insurance company complaints, licenses and financial health, and it can show results by complaint index, which relates complaints to a company's size in a line of business. The NAIC also publishes reports on closed, confirmed complaints reported by state insurance departments, by reason, type of insurance and outcome. Some state insurance departments also publish their own complaint data. Compare companies within the same line (auto with auto, homeowners with homeowners). See how to measure customer satisfaction.
Step 5: Know the safety net
If a licensed insurer fails, state guaranty associations step in. For life, annuity and health policies, the coverage levels in most states are, according to NOLHGA (as of June 1, 2025):
- $300,000 in life insurance death benefits and $100,000 in net cash surrender values;
- $250,000 in annuity benefits;
- $500,000 for basic hospital, medical and surgical or major medical coverage;
- $300,000 for long-term care and disability income insurance.
Some states set higher limits. For property/casualty claims, the National Conference of Insurance Guaranty Funds reports that the most common cap is $300,000 per claim, often with a deductible of about $100. Coverage above these limits is at risk, which is one more reason to prefer a strong insurer for large or long-term commitments. More details: what happens when an insurer fails.
A quick reliability checklist
| Question | Where to check | Good sign |
|---|---|---|
| Licensed in my state? | State insurance department website | Active license for the line you are buying |
| Financially strong? | AM Best, S&P, Moody's, Fitch; insurer's ratings page | Upper categories, stable outlook |
| Fair claims handling? | NAIC Consumer Insurance Search; state complaint reports | Few confirmed complaints relative to size |
| Covered by guaranty fund? | Your policy declarations; state guaranty association | Admitted insurer, amounts within limits |
| Customer experience? | Independent customer satisfaction surveys | Consistent results over several years |
Bottom line
No single number makes an insurer "the most reliable." Combine a valid license, a strong rating, a clean complaint record and an understanding of guaranty limits, and weigh them by how long you will depend on the company. Polis Re can help you shortlist reliable insurers for auto, home, life or business coverage. Policies are issued by licensed insurers and placed through licensed producers in your state. Request a quote.