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Florida officials lash back as Demotech writes to 17 insurers over potential downgrades

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.

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