Moody’s Investors Service has updated its rating methodologies for insurers to include refinements based on lessons learned from the recent global financial crisis.

Ratings agencies came in for considerable criticism during the global financial crisis, but Moody’s says its previous methodologies allowed it to accurately assess the credit risk of insurers. However, new refinements introduced for both property and casualty and life insurers “will better reflect insurers’ creditworthiness”.

Major changes in the updated methodologies include explicit recognition of an insurer’s local operating environment, together with the company’s fundamental business and financial credit profile, better explaining Moody’s insurance ratings in developing markets.

“The updated global insurance methodologies highlight the key factors that drive our ratings of insurers around the world,” Moody’s Group MD Ted Collins said.

The new ratings system will is not expected to result in rating changes for insurers.