rating methodology

According to Joseph Petrelli, President and Co-Founder of rating agency Demotech, the company has taken a decision that could see it declining to rate additional or new carriers in the beleaguered Florida property insurance market.

Lawmakers in Florida are pushing for a new rating agency, or alternative of some description, to come into the state and measure insurance carrier financial adequacy, with a proposal to hire a consultant to evaluate alternative options for providing ratings to insurers.

Weston Property & Casualty Company has now had a receiver confirmed for an insolvency process and liquidation of the company, and it’s been claimed that the insurers assets were insufficient to meet its liabilities, while it had also failed to place its mid-year reinsurance renewal.

Florida’s property insurance crisis continues to get increasingly political, with candidates for the Governor role in the state now blasting each other’s proposals for improving the insurance marketplace and its access to reinsurance.

We’ve learned from sources that Florida focused P&C insurer Weston Insurance never actually completed its debut catastrophe bond deal, the what was supposed to have been $45 million Marlin Re Ltd. (Series 2022-1) cat bond deal.

United Insurance Holdings Corp. has highlighted how it continues to face significant uncertainty after the downgrade by Demotech of its United Property & Casualty Insurance Company (UPC) carrier, despite having been deemed eligible for support via the Citizens guarantee arrangement.

Having had its rating withdrawn recently, Florida focused property insurance carrier Weston Property & Casualty Company is now heading for insolvency, after the regulator initiated delinquency proceedings against it.

As a rating agency and scorekeeper of record for insurance carrier financial stability, Demotech is not the problem in the challenged insurance markets, such as Florida, Louisiana, or elsewhere, according to Steve Menzies, Chairman of Applied Underwriters.

United Property & Casualty Insurance Company (UPC), a carrier of the United Insurance Holdings Corp. group, has become the first downgraded carrier in Florida to become eligible for support via the Citizens guarantee arrangement.

Rating agency Demotech began to take actions on Florida’s property insurance marketplace yesterday, with a number of changes and withdrawals of ratings evident.