TAMPA BAY, Fla. — Florida rating company Demotech responded to the Florida Office of Insurance Regulation saying it won’t be posting the anticipated monetary stability rating downgrades Tuesday.
We realized final week that Demotech had notified about 20 insurance corporations that their rankings have been going to be downgraded, which might finally make it tough for these corporations to function within the state. This comes after reviewing their monetary re-insurance packets for the 2022 hurricane season.
Office of Insurance Regulation (OIR) Commissioner David Altmaier referred to as out the rating company in a letter final week, mainly telling them to return to the drafting board and reassess their rankings tips.
In a response letter to OIR, Demotech President Joe Petrelli wrote:
“Due to various circumstances, Demotech will not take any rating action including affirmation, downgrade, or withdrawal until further notice. While we are unable to provide a specific date for release, we are working to expedite the release of our ratings as soon as possible.”
Several unbiased insurance brokers in Tampa Bay have informed us that the trade is in disaster ready on these looming downgrades. One agent mentioned “Florida may be on fire” if the state does not step in and alter rules that require insurance corporations to have an “A” rating for brokers to jot down insurance policies for them.
In addition, they are saying there might have to be intervention on the federal degree to permit householders with Fannie Mae and Freddie Mac loans to have insurance with lower than “A” rankings. Click right here to learn extra in-depth about what’s at stake.
Frontline Insurance is likely one of the corporations that was notified of a rating downgrade. Frontline CEO Leman Porter despatched a letter to brokers Monday stating that Demotech knowledgeable them that their rating would the truth is not be downgraded on Tuesday.
Porter wrote, “We continue to emphasize our commitment to our customers (and you), which is only strengthened by this news. We anticipate that there will be no disruption to our Agency Partners or customers, in fact, Demotech announced today that they are “changing our deadline and actively reviewing supplemental information provided to us.” As this effort progresses, we commit to keeping you informed and we appreciate your continued trust and partnership.”
Read the total letter from Demotech beneath: