Evidently It’s Not About the Money!

Columbus, Ohio, July 20, 2011:  A recent article in the Herald-Tribune, Sarasota, Florida, discussed the grades assigned to Florida’s insurance companies by consumers.  The grades reflect insureds feedback on the issues of customer service and claims payment as derived from public sources.

To analyze the grades assigned by consumers, Demotech, Inc. calculated the average claim payment in calendar year 2010 and 2009 for the group of carriers rated A, B, C, D and E by consumers.  In each year, the carrier with the highest rating from consumers, A, had the lowest average claim payment.  Equally ironic, the lowest rated insurers, D and E, had the highest average claim payments.

Based upon these results, Joseph Petrelli, President, Demotech, Inc. speculates that the type of claim presented by a consumer and the “bedside manner” of the claims department influence an insurer’s grade more than the amount of money received by the consumer.

About Demotech, Inc.

Demotech, Inc. is a financial analysis firm located in Columbus, Ohio.  Since 1985, Demotech has been serving the insurance industry by providing actuarial consulting and accurate and proven Financial Stability Ratings^® (FSRs) for Property & Casualty insurance companies and Title underwriters.  FSRs are a leading indicator of the financial stability of a company.  Our rating process provides an objective baseline and insight into the future solvency of a company.  As an independent financial analysis and actuarial firm, Demotech has a proven track record of predicting financial stability in the insurance industry.  As the first company to have its rating process formally reviewed and accepted by Fannie Mae, Freddie Mac and HUD, Demotech has been leveling the playing field by offering Financial Stability Ratings^® (FSRs) to insurers of all sizes.

Visit www.demotech.com for more information.