The vast majority of small insurers operating in Florida are considered so financially weak that they wouldn’t typically meet federal guidelines allowing them to back mortgaged homes.
Tag: Demotech
Status of the Property Insurance Market in Florida
Florida is frequently the target of increasingly severe natural disasters like hurricanes, floods, and other calamities that drastically affect the property insurance market.
More than Two Big Storms in Florida Could Spell Trouble for Insurers
In Florida, it’s that time of year again. Peak hurricane season is bearing down on the state like the flying saucer in the film “Nope.” Insiders in the insurance industry say policyholders are insured as long as the state isn’t hit by more than two major storms. Typically, the most dangerous tropical cyclones strike Florida… Continue reading More than Two Big Storms in Florida Could Spell Trouble for Insurers
Florida Creates Backstop to Protect Homeowners Insurance through Hurricane Season
If their insurers lose their financial stability ratings, Florida homeowners will not lose their insurance coverage or face forced policies — at least not during hurricane season. The Florida Office of Insurance Regulation announced today that the state will provide 100 percent backstop coverage of any claim left unpaid by a bankrupt insurer through the… Continue reading Florida Creates Backstop to Protect Homeowners Insurance through Hurricane Season
Demotech Ratings Agency Downgrade of Florida Insurers Delayed
An expected potential downgrade of more than a dozen Florida insurers by the ratings agency Demotech, which was originally scheduled to be released on Tuesday, is delayed, according to the company. “Due to various circumstances, Demotech will not take any rating action, including affirmation, downgrade, or withdrawal until further notice,” stated Joe Petrelli, President of… Continue reading Demotech Ratings Agency Downgrade of Florida Insurers Delayed
Florida Insurers Face Ratings Change that Could Raise Costs
Demotech ratings agency has plans to downgrade more than two dozen Florida-based property insurance companies in a move that could cost more money for homeowners with loans. The ratings firm Demotech plans to downgrade the 27 insurers (not 17 as originally reported) from an “A” rating to ratings of either “S” for substantial or “M”… Continue reading Florida Insurers Face Ratings Change that Could Raise Costs
Demotech Notifies 17 Property Insurers of Rating Downgrades
Florida’s insurance rating agency Demotech has informed approximately 17 property insurance companies that their ratings will be downgraded upon review of 2022 hurricane season reinsurance packets, according to a letter from the Florida Office of Insurance Regulation (OIR). OIR Commissioner David Altmaier sent a letter to Demotech President Joe Petrelli on Thursday sternly requesting that… Continue reading Demotech Notifies 17 Property Insurers of Rating Downgrades
Demotech Withdraws Financial Stability Ratings® Assigned to Lighthouse Property Insurance
Effective March 29, 2022, Demotech, Inc. withdrew the Financial Stability Ratings® (FSRs) previously assigned to Lighthouse Property Insurance Corporation and Lighthouse Excalibur Insurance Company. According to Joseph Petrelli, President, Demotech, Inc., “Despite a substantial capital contribution in the fourth quarter 2021, the operating loss in 2021, which reflected the evaluation of losses and loss adjustment… Continue reading Demotech Withdraws Financial Stability Ratings® Assigned to Lighthouse Property Insurance
Impact of COVID-19 on the Insurance Industry Starts with Credit Insurance: Demotech
The COVID-19 pandemic and the historic federal, state, and local government efforts to mitigate its spread has stopped the economy in its tracks. The unemployment rate in the US may reach record levels. In the insurance industry, some discussion focuses on the response of business interruption insurers. The dialogue will likely continue in court or… Continue reading Impact of COVID-19 on the Insurance Industry Starts with Credit Insurance: Demotech
Demotech to Downgrade Four or More Florida Property Insurers This Week
A state property insurance grading firm will be downgrading four or more insurance companies from their current exceptional rating by Friday. That’s according to Joseph Petrelli, president of Demotech Inc., which reviews and rates 46 insurers that write approximately 66% of Florida’s homeowners’ insurance premium. “This week, we will begin to issue statements on many… Continue reading Demotech to Downgrade Four or More Florida Property Insurers This Week