Rating agency Demotech sent a letter to 17 Floridian insurers on Tuesday explaining that they are likely to have their A ratings downgraded on July 26th, a move the Florida Office of Insurance Regulation (OIR) describes as an “example of inconsistent, monopolistic power of a select rating agency”.
The letter warned 17 carriers in the state that they would be downgraded to S “substantial” or M “moderate” as they do not meet the requirements to sustain an A “unsurpassed” or “exceptional” financial strength rating.
