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Demotech P&C Insurer Ratings

yogibearbullyogibearbull
in Other Investing
Demotech has an "easy" P&C (including home) insurer rating system whereby 98% of insurers get ratings of A or above. Wiki says, "Demotech uses the registered term Financial Stability Rating® (FSR) to judge an insurer's ability to perform in the general economy and the "underwriting cycle that exists in the insurance industry"". Be wary as many of such highly rated insurers can get into trouble or disappear.

Also check ratings by mainstream insurers - A M Best, S&P, Moody's & Fitch - their ratings may be several notches lower than Demotech's. But they only rate large insurers & have stricter standards.

Demotech, as the name may imply, democratizes insurance ratings by rating many new or smaller insurers with an easier rating system.

News https://www.wsj.com/finance/small-insurance-company-hurricanes-a41766d9?mod=djem10point
Wiki https://en.wikipedia.org/wiki/Demotech
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