Editorial l Lawmakers to look for ratings alternatives
The property insurance market in
Already this year, five property insurers have been deemed insolvent and others, trying to remain in business, are refusing to renew policies – which is sending homeowners scrambling to find new insurance. And if the financial ratings of some companies still operating in
So in the middle of hurricane – and election – season, Gov.
Who are they blaming? Demotech, a financial ratings company that has been acknowledged since 1990 by federal mortgage-backers
McCarty notes that Demotech, which has evaluated the financial strength of property insurers for decades, "does a thorough and professional job, using sound actuarial principles and a detailed methodology to determine financial stability ratings for hundreds of companies doing business in
In a supreme demonstration of political posturing, Patronis called Demotech "a rogue agency" and accused the company of being "woke." Cue the political dog-whistles.
As if this weren't already a pocketbook issue, here's one more layer. A legislative committee has allocated
Think about it: If a catastrophe occurs, will these re-labeled insurance firms be able to meet the challenge?
Reports have noted that, as national insurance carriers have scaled back,
State leaders should be spending time and taxpayer money on stabilizing the property insurance market. The ratings agency is not the problem, the market is. Just fix it. Don't shoot the messenger.
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