Print this pageCorporate Milestones

Demotech, Inc. has been solving problems for the insurance industry as well as problems unique to individual companies since 1985. Our corporate milestones and highlights include:


Founded by Joseph L. Petrelli and Sharon M. Romano to serve regional and specialty insurers.
1986 First to issue Financial Stability Ratings® (FSRs) for health maintenance organizations (HMOs).
1987 First to issue FSRs for public entity liability self-insured pools through the development of our Management Audit Process.
1989 First to have Property and Casualty insurance company rating process formally reviewed and accepted by Fannie Mae. An FSR of A or better eliminates the need for property insurance cut-through endorsements by mortgage lenders.
1990 First to have Property and Casualty insurance company rating process formally reviewed and accepted by Freddie Mac.
Began offering Property and Casualty insurance companies and Title underwriters loss cost analysis and rate, rule and form filing assistance.
Addressed the National Association of Insurance Commissioners (NAIC) requirements for Property and Casualty insurers to submit actuarial opinions related to loss and loss adjustment expense reserves concurrent with the 1990 Property and Casualty annual statement.
1992 First to issue FSRs for Title underwriters.
1993 First to have Property and Casualty insurance company rating process formally reviewed and accepted by HUD.
1994 Fannie Mae issued Title underwriting guidelines, naming Demotech as an approved Title underwriter rating service.
1995 First to promulgate Commercial Real Estate Recommendations (CRERs) to provide additional financial due diligence of Title underwriters involved in larger real estate transactions.
1996 Contacted by the Florida Office of Insurance Regulation (OIR) when the property insurance market encountered newly established insurers that did not have the representative historical operating experience to meet traditional rating requirements.
Demotech developed evaluation procedures for the assignment of FSRs to newly formed companies.
Coordinated the first seminar regarding the implementation of Statements of Actuarial Opinion for Title insurance companies on behalf of the Conference of Consulting Actuaries.
1999 Co-authored the Commerce Clearing House publication describing the evolution of the Canadian Title insurance industry.
2001 Completed the initial loss and loss adjustment expense reserve review of the Iowa Finance Authority – Title Guaranty Division.
2002 Revitalized the Ohio Title Insurance Rating Bureau (OTIRB).
2003 Assisted the North Carolina Title Insurance Rating Bureau with the development and filing of Closing Services product.
Assisted the OTIRB with its first rate revision since 1980.
2004 Introduced Demotech Performance of Title Insurance Companies and Quarterly Updates, presenting consolidated statutory financial information for the Title insurance industry.
Published Serious about Solvency – Financial Stability Rating® Survival Rates 1989 through 2004. This publication outlines the description of our analysis process, the assignment of FSRs and the survival rates of those ratings. This retrospective analysis indicates that insurers earning FSRs of A or better had survival rates at or above expectations.
2005 Celebrated 20th anniversary, continuing to grow and serve Property and Casualty insurers, Title underwriters and specialty insurers.
HUD approved Demotech's rating process for professional liability insurance under Notice H04-15, Professional Liability Insurance f or Section 232 and 223(f) Programs.
2006 Joseph L. Petrelli, ACAS, MAAA, FCA, authored What We've Got Here Is a Failure to Communicate – How Traditional Financial Reporting Contributes to Misunderstanding of Title Insurance Loss Activity. This discussion expounds upon the unintended and unfortunate ramifications of Title underwriters' required conformance with Property and Casualty financial reporting standards and how industry comparisons fail to recognize fundamental differences between Title and Property and Casualty coverage characteristics.
2007 Designated the Official Research Partner of Insurance Journal, providing research, actuarial and statistical support and collaborating on special joint reports pertaining to insurance industry performance and financial results.
2008 Introduced Insurance Agents' Errors and Omissions Insolvency Gap Legal Defense Coverage.
2009 Expanded the Insolvency Gap Coverage to include indemnity as well as legal defense.
2010 Celebrated 25th anniversary.
Participated in a comprehensive examination of insurer financial strength authored by Florida State University and The University of North Texas.