Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2025
Scrutiny over ratings preceding insurer insolvencies
Wall Street Journal analysis cited in the reference material reported that Demotech-rated insurers were substantially more likely to become insolvent than insurers rated by rival agencies. It also reported that Demotech had not withdrawn an A rating from some insurers until less than a year before insolvency, raising questions about rating surveillance and methodology.
2023
Academic criticism of Demotech-rated insurer quality
A study by researchers associated with Columbia Business School, Harvard Business School, and the Federal Reserve concluded that Demotech-rated Florida property insurers were generally weaker than traditionally rated insurers across several observable financial and operational risk measures. The findings questioned whether high Demotech ratings reliably indicated the same level of insurer quality as ratings from traditional agencies.