Demotech Enhances Homeowners' Insurance Initiatives for 2023

Demotech, Inc., a reputable force in the insurance industry based in Columbus, Ohio, has unveiled initiatives to enhance the availability and affordability of homeowners' insurance. As the year concludes, they have focused on two strategic actions. They are rigorously evaluating and rating State Specialists, key figures who supply data to the National Association of Insurance Commissioners. These specialists fortify their claims payment capabilities post-disaster by collaborating with major global reinsurers, securing catastrophe reinsurance, and adhering to rigorous regulatory compliance requirements.

In addition to these efforts, Demotech addresses systemic insurance industry challenges such as fraud, waste, and excessive litigation. Their research into tech-enabled litigation models reveals a surge in legal actions within the sector, influenced in part by third-party litigation financing. This trend has escalated claim frequencies and operational costs, directly impacting risk management and the underwriting process for insurers and carriers.

Looking towards 2026, Demotech is advocating for systematic transformations, including imposing taxes on third-party litigation profits to alleviate the financial load on insurers. Their ongoing mission is to educate the industry about these issues and work towards an accessible, affordable insurance landscape. Founded in 1985, Demotech is renowned for its independent Financial Stability Ratings®. As a registered Nationally Recognized Statistical Rating Organization (NRSRO), they persist in providing critical ratings insights beneficial to providers and payers in the insurance space. More in-depth details about Demotech's ratings and methodologies are available on their official website.