In the business world, brand awareness is eagerly pursued because companies recognize that most people buy and trust brands that they are familiar with. It is also the reason why companies pour millions of dollars into advertisings to reach their intended target markets or paying customers.
Brand awareness especially plays an important role in a saturated market, like insurance. It sets companies apart from the rest of the competition. Prior to the whole insurance fiasco in California, the three main brands that had abundant media presence were Farmers, Allstate, and State Farm. Everyday, advertisements from these three companies were seen in different media spaces. People who may have had adequate exposure to the advertisings will have, or have, strong recognition of the brands. To some, the brand becomes valuable to them--valuable enough to trust and buy from them. That is the power of brand awareness.
On the opposite side of brand awareness comes insurance ratings. This is another important concept for insurance companies. Insurance ratings tell the financial robustness of insurance companies. Like brand awareness, ratings pull in customers (and investors alike).
In the insurance world, insurance companies get their ratings through insurance raters like AM Best. AM Best setting the gold standard. Rating companies utilize the alpha grading system of A through F. A being a superior rate; and F means a company is in its dissolution phase. Any insurance company that has a rating of A means the insurance company is financially strong. It is capable of paying off any claims.
What does it mean for insurance companies when their ratings are downgraded? When State Farm's rating has gone from A to B (under the rating system of AM Best B is considered good), it signals to the public that their financial strength has diminished. Although they no longer have the financial capability prior to the downgrade, they still have the ability to pay off any and all claims.
In sum, look beyond brand awareness. There are hundreds of insurance companies who have strong ratings which means they are on equal, or even better, footing as the brands out in the market.