After Suspending New Business in Florida, Lighthouse Loses Financial Rating

March 31, 2022

  • March 31, 2022 at 9:15 am
    SWFL Agent says:
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    I’m not sure what Demotech’s purpose is in the marketplace. You either have an “A” rating or you’re out of business. I think I can make those predictions – If the company is writing NB, I’ll assign an “A”, if you quit writing and are out of money, I’ll pull the rating.

    • March 31, 2022 at 12:15 pm
      Arthro says:
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      Their only purpose is to keep mortgage companies from going into panic mode. Their ratings system is a joke.

    • March 31, 2022 at 3:53 pm
      Vox says:
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      There you have it, SWFL. You can make the predictions, so open your shop and offer Demotech-like services for half the price. You can generate worthless ratings for less than Demotech charges and having the new-business cutoff as the dividing line makes it ever so easy.

    • March 31, 2022 at 6:05 pm
      Wayne says:
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      Borrow enough money to satisfy the OIR in Florida, get a COA and you are ‘A’ rated by Demotech.

      Demotech sent a letter to the Governor, State Senate and State House of Representatives requesting a special session of the legislature to address the issues with the Florida property insurance market suggesting that they would downgrade the FSR of 20 companies.

      Demotech has sabre rattled this downgrading of companies for years now but the ‘boy crying wolf’ failed to prove their worth as a ratings agency, often downgrading companies after they went into receivership.

      As the Florida domestic property insurance carriers enter reinsurance season, the truth about the companies that are viable will be told by their ability to acquire reinsurance.

      The house of cards in the Florida property insurance market is about to collapse!

      • April 1, 2022 at 12:05 pm
        Tiger88 says:
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        To be fair Wayne, the FL residential market has collapsed. We’re just waiting for the debris removal crews to move in. I think that about a third of all homes, condos and trailers will be Citizens by the middle of 2023. There is really no saving it at this moment, legislation and premium increases can’t cover it up now.

  • April 8, 2022 at 9:29 am
    RiskyManagement says:
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    Its amazing how all the FL insurers with terrible claims practices, constant unending employee turnover, and incompetent claims departments and useless leadership are going out of business…..must be fraud and contractors.

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