State considers shift in property insurer financial ratings; Demotech argues consistency is important
TALLAHASSEE — Angry at a ratings agency that raised the possibility of downgrading 17 Florida property insurers, state leaders could be poised to look for an alternative.
The Joint Legislative Budget Commission next week is expected to consider a proposal to spend $1.5 million to hire a consultant that would look at options for property insurers to get adequate financial ratings.
Such ratings are important, in part, because mortgage-industry giants Fannie Mae and Freddie Mac require homes to be insured by financially sound companies. If insurers lose satisfactory ratings, homeowners could be forced to find other coverage.
State insurance regulators scrambled in July after they said the Demot...
