Demotech Company Classification System A Focus on Function, Not Size

Columbus, Ohio, October 30, 2012:  Demotech’s Company Classification System, with its focus on function, not size was presented by Joseph L. Petrelli to MSO, Inc., a recent educational conference.  Demotech’s philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size.  This philosophy was the catalyst for the Demotech Company Classification System to stratify and categorize insurers into operational categories.

The Demotech Company Classification System categorizes all property/casualty insurers into one of 11 categories based on an analysis of data reported by the companies.  The categories are Surplus Lines, Risk Retention Group, Reinsurer; Super Regional; State Specialist; Coverage Specialist; National; Near National; Direct Premium Written <$1,000,000; Strategic Subsidiary; and Regionals.  A company cannot be assigned to more than one category.

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About Demotech, Inc.

Demotech, Inc. is a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers.  Since 1985, Demotech has served the insurance industry by assigning accurate, reliable and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurers and Title underwriters.  FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer.  Demotech’s philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size.  This philosophy was the catalyst for the Demotech Company Classification System, which was published in Insurance Journal, in order to stratify and categorize insurers into operational categories.  Visit www.demotech.com for more information.