Alliance for Competition in Ratings, LLC Announces Initial Efforts
Columbus, Ohio, March 12, 2015: On the heels of New York Attorney General Eric Schneiderman’s recent negotiations with Equifax, Experian and TransUnion, the Alliance for Competition in Ratings, LLC (ACIR) is pleased to announce the completion of its solicitation of members on the timely subject of third party ratings.
ACIR’s mission is to educate regulators, legislators, risk managers and third parties as to the threats and challenges facing consumers or duly licensed entities due to the creation, imposition or existence of arbitrary rating requirements, and to promote transparency, accountability and competition in the ratings industry.
ACIR believes that any industry, individual or company impacted by third party ratings — consumers, regulators, legislators at all levels of government, lenders, debtors, shareholders, producers, carriers, reinsurers, vendors, purchasers of goods or services, or those who establish and rely on rating-related criteria — should be made aware of the ramifications of instituting unnecessary restrictions via a rating requirement process. As such, the mission of ACIR is to enhance the knowledge and understanding of all parties involved in the selection, assignment or establishment of third party ratings and to provide an opportunity for all parties to communicate with one another. ACIR is exclusively dedicated to this unique need for any sector of the economy that utilizes third party ratings or opinions.
ACIR will focus its initial efforts on rating requirements affecting the insurance industry. According to Joe Petrelli, President, Demotech, Inc., the administrator of ACIR, any industry that opens a meeting with an antitrust statement to emphasize the need to avoid boycotts, coercion, or other anti-competitive practices should recognize that the need for competition also exists regarding the ratings utilized within that industry. The uninformed utilization of a single rating requirement in any sector fails consumers, investors, duly licensed entities and interested third parties.
About Demotech, Inc.
Demotech, Inc. is a financial analysis firm located in Columbus, Ohio. Since 1985, Demotech, Inc. has been serving the insurance industry by providing actuarial consulting as well as 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 an insurer. Our rating process provides an objective baseline as well as insight as to the financial stability of an insurer. Demotech levels the playing field by offering FSRs to insurers of all sizes. Visit www.demotech.com for more information.
About Alliance for Competition in Ratings, LLC
The Alliance for Competition in Ratings, LLC (ACIR) was formed to enhance the knowledge and understanding of all parties involved in the selection, assignment or establishment of third party ratings; to promote transparency, accountability and competition in the ratings industry; and to allow all affected parties the opportunity to communicate about rating requirements with one another. ACIR is exclusively dedicated to this unique need for any sector of the economy that utilizes third party rating opinions. Visit www.acir.co for more information.