Demotech, Inc. has been analyzing the financial stability of Property and Casualty insurance companies for over twenty years. Serious About Solvency, a retrospective analysis, indicates that stable insurers, insurers earning Financial Stability Ratings® (FSRs) of A or better, had survival rates at or above expectations.
Since Demotech focuses on the assignment of FSRs to regional and specialty insurance companies, our historical record of financial analysis is evidence that regional and specialty insurance companies earning a stable FSR present no more financial risk that larger insurance companies earning stable FSRs. Due to this proven predictive ability, FSRs can be utilized to identify financially stable companies regardless of size.
Serious About Solvency - Financial Stability Ratings® Survival Rates 1989 through 2004 - a retrospective review of the accuracy of FSRs