Demotech, Inc. supports efforts to improve the availability and affordability of Homeowners' insurance

COLUMBUS, Ohio, Dec. 23, 2025 /PRNewswire/ -- Demotech, Inc. reports ending 2025 by supporting efforts to improve the availability and affordability of insurance, particularly Homeowners' insurance. Our efforts consist of two primary channels. The first is reviewing and rating State Specialists, which comprise 23.6% of the insurers reporting data to the National Association of Insurance Commissioners. State Specialists understand their markets and often utilize the largest reinsurers in the world to provide catastrophe reinsurance protection to provide claims-paying capacity associated with natural disasters.

Second, we will continue to speak out, educate, and demonstrate the adverse impact of waste, fraud, and abuse on the cost of all insurance coverages. We pioneered the research project that revealed the online business model of tech-enabled litigation instigation. This business model has driven up the frequency of litigation in the insurance industry, and by doing so, has attracted and deployed tens of billions of dollars of third-party litigation funding to further increase litigation frequency against the insurance industry. 

Joseph L. Petrelli, ACAS, ASA, MAAA, MBA, President and Co-founder, Demotech, Inc., states, "As 2025 concludes, our role in the unearthing of the business model of tech-enabled litigation instigation has pitted us against powerful plaintiff attorney firms and the third-party litigation funders who have profited by investing in litigation. Importantly, we support the position that the net profits associated with third-party litigation funding efforts should be universally taxed. In 2026, we will remain undeterred in our efforts to inform, educate, and estimate the adverse impact of this previously covert effort to transition policyholder reported claims to contested or litigated status has had on the availability and affordability of insurance."

About Demotech, Inc.

Established in 1985, Demotech, Inc. is a financial analysis firm located in Columbus, Ohio. Demotech has served the insurance industry by providing objective and independent Financial Stability Ratings^® (FSRs) for Property & Casualty insurance companies, Life & Health insurance companies, and Title underwriters, among others. As the first company to have its rating process formally reviewed and accepted by Fannie Mae, Freddie Mac, and HUD, Demotech has been leveling the playing field by offering FSRs to insurers of all sizes. As of July 11, 2022, Demotech is registered with the U.S. Securities and Exchange Commission as a nationally recognized statistical rating organization (NRSRO) in the class of ratings for insurance companies.

The latest FSRs of all entities reviewed and rated by Demotech, Inc. can be found at www.demotech.com. Information on the procedures and methodologies we utilized to determine and assign ratings can be found at https://www.demotech.com/wp-content/uploads/Ex2.pdf. 

SOURCE Demotech, Inc.