DFS Rating Agency Alternatives Study Survey
1.
Are you a Demotech rated company? If No, please complete Question 2 and respond to applicable questions based on your previous rating experience with Demotech.
Yes
No
2.
Did you receive a letter from Demotech after June 1, 2022, suggesting that your company might be downgraded?
Yes
No
3.
Are you rated by a different rating agency or more than one rating agency?
Yes
No
If Yes, which rating agency(ies)?
4.
How long have you been a Demotech rated company? Number of years
5.
What is your satisfaction level with Demotech?
Highly Satisfied
Mostly Satisfied
Satisfied
Somewhat satisfied
Not satisfied
6.
What are the primary benefits for you to use Demotech as a rating agency over other rating agency options? Select all that apply.
Cost
Ease of dealing with
Less rigorous than other agencies
Flexibility
Higher reputation than other rating agencies
Supportive of Florida Domestics
Demotech understands the Florida market
Other (please specify)
7.
Are there any downsides to using Demotech? Select all that apply.
Not as well-known as the larger national rating agencies
Demotech is too subjective
Demotech is not flexible
Demotech costs are out of line
Demotech staff is not as knowledgeable as that of other rating agencies
Demotech does not rate larger insurers
Demotech does too much public posturing in support of its interests
Demotech communications are unpredictable and disruptive
No downside to using Demotech
8.
What would you suggest Demotech do differently or is there anything you would change? Select all that apply.
Provide more time for insurer feedback
Listen more to an insurer’s business plan
Give more weight to legislative changes
Weigh some rating factors more
Weigh some rating factors less
No suggested changes to Demotech
Other (please specify)
9.
If you received a letter, did the letter seem final?
Yes
No
10.
If you received a letter, did it seem that you were going to have another opportunity to address concerns prior to being downgraded?
Yes
No
11.
Did you face any issues obtaining reinsurance for the 2022 hurricane season? Select all that apply.
Cost
Unreasonable terms
Limited availability
Not available
Other (please specify)
12.
Do you have concerns with Hurricanes Ian and Nicole and whether you will be able to pay all your claims?
Yes
No
13.
Do you think you will experience significant adverse loss development over an extended period of time with Hurricane Ian or Nicole?
Yes
No
14.
Do you think that the legislation passed in the 2022 Regular Session and in the Special Session in May will benefit your company? Select all that apply.
Highly Benefit
Mostly Benefit
Benefit in some way
Not Benefit
The legislation was inconsequential and more should have been done
15.
What ideas do you have for future legislation in Florida? Select all that apply.
Expand state programs like Citizens and the FHCF
Reform laws regarding litigating insurer claims
The state should subsidize insurers in some way
Florida should create a state rating agency as an option to Demotech
Other (please specify)
16.
Do you have any other ideas for potential legislative changes that would help solve the current insurance crisis in Florida?
Yes
No
If yes, please provide comments here:
17.
What do think about the Florida Department of Financial Services Study to identify an alternative to Demotech? Do you have any ideas or suggestions?
Yes
No
If yes, please provide comments here:
18.
What do you think about a State or public rating agency? Select all that apply.
This is a good idea
This is a bad idea
I think the current rating agencies are satisfactory and nothing needs to be done
I am unhappy with the current rating agency options and other alternatives should be considered
I’m concerned if Demotech is replaced, what we end up with will be worse
19.
Do you have a potential solution to the “rating agency problem” for Florida insurers?
Yes
No
If yes, please provide comments here:
20.
Please elaborate on any response above and reference the Question number. Your comments and suggestions are appreciated. Note: Individual company names will not be identified in the results of this survey.
21.
Other Comments: