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for "a number" of
Florida insurers. The letter stated: "The conditions of the property insurance marketplace in Florida are unsustainable, and without the necessary corrective action, many Florida insurers will struggle to maintain adequate surplus, efficient capital sources will avoid the market,
226:
Demotech developed a rating system for independent, specialt, and regional insurance carriers. It gathers and analyzes annual and quarterly statutory financial statements, statements of actuarial opinion, actuarial opinion summaries, reinsurance information, audit reports, and discussions with
367:. In 1996, the Florida Office of Insurance Regulation requested that Demotech rate new Property & Casualty Insurance companies doing business in Florida. Because newly capitalized insurers do not have the financial records typically utilized, a new process was developed using
430:. Their independent study reviewed thousands of insurer ratings issued over nine years. The resulting paper was "A Comprehensive Examination of Insurer Financial Strength Ratings," and its executive summary contained the following conclusions:
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since 1988. The data is released annually and updated quarterly. It represents over 99% of the premium volume in the title industry and
Demotech claims it "is the most complete and thorough industry analysis available".
241:. The first five predict the percentage of insurers that will have a surplus 18 months after their ratings no matter "the severity of a general economic downturn or deterioration in the insurance cycle".
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guidelines and application. As of 2014, the company was reviewing/rating companies that write about 60% of those policies in
Florida and were reviewing/rating over 400 insurance carriers nationwide.
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do rate insurance providers, but typically only large national companies. Demotech was founded in 1985 to provide financial analysis of, and actuarial services for, niche markets ignored by
1145:
356:
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386:; claims department procedures and practices; initial rate, rule, and form filings; biographies of critical employees, service providers and principals; reinsurance data;
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Demotech issues financial stability ratings for 50 Florida-based insurers. On March 23, 2022, the top five executives from
Demotech sent a letter to Florida's Governor
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issues financial-strength ratings measuring a company's ability to pay back debt by making timely principal and interest payments and the likelihood of default.
419:
950:
Sastry, Parinitha; Sen, Ishita; Tenekedjieva, Ana-Maria (December 23, 2023). "When
Insurers Exit: Climate Losses, Fragile Insurers, and Mortgage Markets".
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466:"Demotech insurers are of significantly lower quality than traditional insurers across most observable measures of financial and operational risks."
211:
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234:(FSR) to judge an insurer's ability to perform in the general economy and the "underwriting cycle that exists in the insurance industry".
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the comparability between
Demotech and others has "important public policy implications for insurers, regulators and consumers"
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Demotech provides an important service within the ratings community and plays a very important role in the insurance market.
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management. It then performs "an analysis of a series of quantitative ratios and certain qualitative considerations".
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examined the quality of
Florida property insurers rated by Demotech versus traditional rating agencies, and found:
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private reinsurance costs will become prohibitively expensive, and consumers will ultimately bear the cost."
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in 1992, more than 20 insurance companies could not cover their losses and were taken over by the state of
319:
Licensed by state regulatory authorities. Evaluation of their financials precludes assignment at an FSR.
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Finance
Monthly’s Innovation and Excellence Awards 2015 — USA — Excellence in Financial Analysis award
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issues financial-strength ratings measuring a company's ability to immediately pay claims presented.
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476:" vast majority of Demotech insurers would not meet GSE eligibility under AM Best’s methodology."
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there is general consistency in the firms that each agency would categorize as financially secure
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ACQ Global Awards 2015 — US — Niche
Financial Analysis Provider of the Year (Insurance) award
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ACQ Global Awards 2014 — US — Niche
Financial Analysis Provider of the Year (Insurance) award
473:
threshold. This is despite the fact that traditional insurers are higher quality on average."
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plus the Senator and House leadership entreating them to pass reforms before the start of
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on its website. As of August 2022, Demotech was one of ten organizations on that list.
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422:, Risk Management and Insurance compared Demotech FSRs with insurer ratings issued by
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Title Insurance A Guide to Regulation, Coverage and the Claims Process in Ontario
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ACQ Global Awards 2015 — US — Gamechanger of the Year (Financial Analysis) award
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37:
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929:"Grim new developments reveal more trouble in Florida home insurance market"
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ratings comparisons between Demotech and others show "relative consistency"
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season on June 1. Failure to do so would cause Demotech to downgrade the
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Ineligible for an FSR because complete financial data was not available.
163:(P&C) industry. It is independent from the companies that it rates.
155:, that focuses on independent, regional, and specialty companies in the
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469:"Demotech ratings are almost uniformly high and sufficient to meet the
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698:"Insurance Carrier Ratings: What Are They And Why Should It Matter?"
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583:"Insurance Journal Names Demotech As Official Research Partner"
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378:; administrative agreements; marketing and sales materials;
151:, is an American insurance rating agency headquartered in
135:
207:. The principals were Joseph and Sharon Romano Petrelli.
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Nationally recognized statistical rating organizations
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nationally recognized statistical rating organizations
970:"Demotech Performance of Title Insurance Companies"
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671:"AM BEST VS. DEMOTECH FINANCIAL STABILITY RATING"
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908:. US Department of Housing and Urban Development
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585:. Wells Publishing Company. January 18, 2007
420:Florida State University College of Business
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815:"Financial Stability Ratings® Definitions"
437:Demotech serves a unique group of insurers
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558:"Demotech, Inc. Insurance Company Review"
1136:Insurance companies of the United States
1126:Companies based in Franklin County, Ohio
879:. Federal Home Loan Mortgage Corporation
487:Performance of Title Insurance Companies
330:Not Rated do not currently have an FSR.
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850:. Federal National Mortgage Association
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212:U.S. Securities and Exchange Commission
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759:US Securities and Exchange Commission
696:Pelletier, Andrea (29 October 2019).
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651:. The Bar Plan, Inc. 6 November 2017
645:"The Bar Plan Chooses Demotech, Inc"
126:, insurance information publications
899:"HUD Casualty Insurance Acceptance"
1086:HR Ratings de México, S.A. de C.V.
428:Big Three (credit rating agencies)
230:Demotech uses the registered term
205:Big Three (credit rating agencies)
14:
677:. Clear Choice Insurance Services
556:Hunt, Janet (December 21, 2021).
16:American insurance rating service
1141:Insurance industry organizations
927:Hurtibise, Ron (29 March 2022).
786:"Property & Casualty Review"
237:The company has eight levels of
870:"Freddie Mac rating acceptance"
264:(A Double Prime), Unsurpassed
187:Traditional companies such as
115:Demotech Difference (magazine)
1:
1013:SEC website of Current NRSROs
841:"Fannie Mae Title Acceptance"
613:. CCH Canadian. p. 236.
931:. South Florida Sun-Sentinel
347:Their FSRs were approved by
407:financial stability ratings
384:investment policy statement
232:Financial Stability Rating®
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1090:Japan Credit Rating Agency
1077:Egan-Jones Ratings Company
607:McKenna, Bruce A. (1999).
450:In 2023, researchers from
1100:Moody's Investors Service
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193:Moody's Investors Service
24:
1095:Kroll Bond Rating Agency
560:. Financial Review Board
452:Columbia Business School
485:Demotech has published
456:Harvard Business School
275:(A Prime), Unsurpassed
173:insurance rating agency
1131:Credit rating agencies
1105:S&P Global Ratings
729:"Corporate Milestones"
704:. Gulf Shore Insurance
702:Gulfshoreinsurance.com
67:Sharon Romano Petrelli
460:Federal Reserve Board
675:Myclearchoiceins.com
388:Catastrophe modeling
376:financial statements
181:credit rating agency
359:in 1993. Following
214:provides a list of
197:Standard and Poor’s
107:President & CEO
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403:Atlantic hurricane
382:of key personnel;
161:casualty insurance
105:Joseph L. Petrelli
65:Joseph L. Petrelli
48:Financial services
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399:Ron DeSantis
396:
392:Underwriting
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297:Substantial
286:Exceptional
253:Description
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72:Headquarters
34:Company type
531:Freddie Mac
414:Comparisons
353:Freddie Mac
167:Differences
89:Area served
38:Corporation
1120:Categories
976:. Demotech
821:. Demotech
792:. Demotech
735:. Demotech
540:References
527:Fannie Mae
458:, and the
349:Fannie Mae
101:Key people
765:31 August
426:plus the
373:pro forma
351:in 1989,
308:Moderate
239:stability
138:.demotech
1072:Demotech
1052:(NRSROs)
980:30 March
935:30 March
912:30 March
883:30 March
854:30 March
825:29 March
796:30 March
739:29 March
708:30 March
681:30 March
655:30 March
626:31 March
589:30 March
564:30 March
250:Percent
157:property
120:Services
112:Products
44:Industry
1062:AM Best
956:4674279
424:AM Best
365:Florida
247:Rating
222:Ratings
189:AM Best
131:Website
62:Founder
54:Founded
954:
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494:Awards
199:, and
1048:US's
902:(PDF)
873:(PDF)
844:(PDF)
513:Notes
261:100%
1067:DBRS
982:2022
952:SSRN
937:2022
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710:2022
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628:2022
615:ISBN
591:2022
566:2022
335:N/A
305:90%
294:95%
283:97%
272:99%
210:The
159:and
140:.com
82:U.S.
57:1985
529:or
471:GSE
357:HUD
338:--
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