The state’s volatile insurance market was rattled again this week after rating agency Demotech signaled it would downgrade the Financial Stability Ratings (FSR) of at least 17 property insurers, potentially impacting millions of Floridian homeowners.
Among other things, the FSR affects what kind of home loans buyers can obtain and some insurers can write policies only with the highest rating.
Florida Association of Insurance Agents (FAIA) posted on its website Thursday: “Here we go again. In documents obtained by FAIA, Demotech has notified multiple carriers of their intent to downgrade the company’s rating from ‘A Exceptional’ to ‘S Substantial.’ Also included was a press release dated July 26, 2022, attempting to explain Demotech’s role in the Florida market, recent events, and legislative reforms, and stating that all ‘carrier Financial Stability Ratings (FSRs) have now been updated’ on their website. Yet another chapter in Demotech’s tumultuous saga of rating Florida’s domestic insurance market is about to unfold.”