Demotech Actuaries Offer Guidance on Florida Insurers’ Financial Ratings

March 18, 2010

  • March 18, 2010 at 8:23 am
    DF says:
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    Weiss is so much better than demotech ratings. Every D- rated florida company imploded while demotech gives everyone an A while they go down.

  • March 18, 2010 at 10:25 am
    Mr. Solvent says:
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    So Demotech is advising carriers on what might trigger scrutiny. Does that mean that carriers will now start to cook the books to more avoid said scrutiny?

  • March 18, 2010 at 1:37 am
    JR says:
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    It doesnt matter if they cook the books or not they still get an “A” rating

  • March 18, 2010 at 1:41 am
    Arthro says:
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    Remember those rating firms that endorsed the mortgage-backed securities that put Wall St in a meltdown…?

    Demotech is doing the same thing by endorsing thinly capitalized, fly-by-night insurers that will go belly up as soon as we get the next hurricane. Homeowners and mortgage companies are relying on Demotech’s A ratings as the sole measure of financial stability for these companies, and it is a scam.

    If we get a hurricane, Demotech is done. They should be investigated, but the OIR is a willing accomplice in this mess.

  • March 18, 2010 at 1:55 am
    JR says:
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    The easiest thing that Demotech could do to build a little confidence in its rating profile is to give grades like all the other rating agencies do. It is to simple to say “Oh they have an “A” rating with demotech” Well a demotech “A” is $1.00 from no rating.
    Give us “A+, A, A-, B+, B, B-, C, D, & run for the hills. Lets be serious here, the only people that have confidence in this current structure are consumers that have no idea that there is no such thing as a “B” rating. agents certainly know the game and use it to their advantage. Lenders have no clue. so who are we trying to fool here????

  • March 18, 2010 at 2:12 am
    Bernie Maddoff says:
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    These start up carriers are a PONZI!

    1. Start a company with borrowed 5 million.
    2. Create a MGA to administer (Ha) the company.
    3 Charge 65% of the premiums for doing so.
    4. Put together some bulls*it reinsurance
    5. Give the keys to FIGA when the wind blows.
    6. Let all the citizens and good carriers,if any are left to pay for your loses through FIGA assessments.
    7. Pay off the 5 million loan and pocket the rest through your MGA.

    WAKE UP! THIS IS THE PLAN IN PLACE

  • March 18, 2010 at 2:18 am
    Joe says:
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    The FL DOI is regulating Florida Startup carriers like Chris Dodd and Bwarney Fwank regulated banks.

    This is another meltdown waiting to happen. The only problem is it will be after a hurricane and all the Florida agents will be telling their clients to wait for their Guarantee Fund to pay their claims. Oh I forgot to remind you that Florida’s fiscal budget for 2010 is 5 billion short.

    A DISASTER WAITING TO HAPPEN!

  • March 19, 2010 at 12:28 pm
    An actuary says:
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    What actuaries at Demotech? Go to http://www.actuary.org and “find an actuary” – there is nobody listed as being a Fellow of any actuarisl society, and only one ACAS in entire demotech “organizaqtion”.



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