Demotech Advisory Encourages Communication With Reinsurers On Base Rate Provisions, Claims Procedure Changes

In an advisory issued to Florida property insurers, Demotech, Inc. reminds that affiliated reinsurers and related parties, inclusive of Demotech, should be regularly updated on the implementation of any base rate provisions or changes in claims procedures and practices. 

Demotech reports that reinsurers have indicated recent interest in:

• The focus and frequency of ratings review and analysis
• Understanding of ratings tolerance in regard to catastrophe modeling and carrier exposure
• Florida Hurricane Catastrophe Fund response capacity
• Adequacy of base rates in residential property insurance
• Political risk associated with legislative or executive decisions

Should you require facilitation in communicating these issues to the appropriate parties, please contact Colodny Fass.