The decline of the insurance industry is slow, Demotech tells the authorities [South Florida Sun-Sentinel]

The decline of the insurance industry is slow, Demotech tells the authorities [South Florida Sun-Sentinel]

The number of votes to download Florida-regular insurances do not take place on Tuesdays after.

CEO of Ohio-Demotech, which last week sent letters to 27 insurers telling them that their financial power may be reduced. July 26On Monday afternoon he sent a letter to the Insurance Commissioner David Altmaier suspending “until further notice.”

The discharge, from A, which stands for “Special” or “Unsuccessful,” could put hundreds of thousands, perhaps millions of homeowners in mortgage defaults due to federal mortgage defaults. Fannie Mae and Freddie Mac.

Fannie Mae and Freddie Mac requires homes that return to be insured with carriers rated A. More Florida carriers are only rated by Demotech, meaning the loss of their A ratings could put them at risk of higher interest rates forced by lenders.

Altmaier is Florida Chief Financial Officer Jimmy Patronus On Thursday he wrote to Demotech, demanding to know why it appeared to have gone beyond its valuation method and planned to downsize the company based on the company’s view of the Florida insurance market.

But in a letter notifying insurers of the impending downgrade, Petrelli said he would not agree to support, such as increased premiums, that he had previously agreed to allow companies to keep their A ratings.

The reduction, he said, was mainly due to “the unwillingness or inability of a [Florida] Legislature” – during the special insurance period before the hurricane – “to deal with the long, inconsistent, and backlog of cases that have caused the disruption that has made our previous facilities ineffective.”

Monday’s letter suspended the download plans. Florida to Office of Insurance Regulation released Petrelli’s letter without comment.

The letter said that Demotech would respond to Altmaier and Patronis’ letters on Tuesday, but added that “due to various circumstances, Demotech will not take any action such as confirmation, reduction, or withdrawal until further notice. Although we cannot specify an exact date for the release, we are working to expedite the release of our votes as soon as possible.” .

Petrelli did not immediately respond to emailed questions about the delay.

Paul HanderhanPresident of the consumer watchdog group Federal Association for Insurance Reformreleased a statement indicating that Demotech has agreed to review the information provided by insurers hoping to maintain their A ratings.

Handerhan’s statement said: “I appreciate the actions taken by Florida regulators to protect consumers, as well as Demotech’s willingness to delay the proposed installments. We hope this will give the affected insurers time to submit additional documents for Demotech to consider in order to help them keep their money. A, just as the federal and state authorities want.”

If few or no insurers were dropped, it wouldn’t be the first time Demotech announced such plans and changed its mind, according to a news release from the Florida Association of Insurance Agents provided by OIR and Altmaier and Patronis’ letters last week.

This release asked, “Is it time?” Florida to open a website on Demotech?” It explained that Demotech became popular after more than a dozen insurance companies came out Florida market following Hurricane Andrew in 1992.

Demotech, founded by Petrelli and his wife, was certified by Fannie Mae and Freddie Macmaking Demotech’s A ratings acceptable to mortgage lenders and “therefore the standard for all Florida home insurance,” the agency released.

After 25 years, Demotech has the power to manage money Florida household goods, release said.

Large and well-known companies, such as AM Bestrefused to vote for the majority of a Florida– carriers domiciled, arguing that they are not capitalized enough.

The release said Petrelli “has made a name for himself by engaging in political drama that threatens the carrier’s decline, while maintaining [press conferences] to explain what the company does and how to measure money.”

The release said that Demotech’s latest letter to insurers “appears to be an attempt to demonstrate the company’s strength and power in Florida.” It also noted that Demotech had previously issued notices of its intention to take down companies in 2017, 2018, 2020, 2021 and 2022 – warnings that “were not fulfilled.”

Ron Hurtibise covers business and consumer issues South Florida Sun Sentinel. He can be reached by phone at 954-356-4071, on Twitter @ronhurtibise or by email at [email protected].

©2022 South Florida Sun-Sentinel. Go to Published by Tribune Content Agency, LLC.