Demotech, Inc. Supports Insurance Trade Organizations and Encourages Others to Do So

COLUMBUS, Ohio, Aug. 31, 2026 /PRNewswire/ -- September is often the time when budgets for the current year are critically reviewed to see how things went, and budgeting for the ensuing year is taking shape. Demotech, Inc. encourages insurers and associate members of trade associations to stay the course on their memberships. 

Joseph L Petrelli, President and Co-founder, Demotech, Inc. notes "Trade organization membership dues are heavily leveraged because they are a collective voice. I believe that 2017 to 2026 is the insurance sector's "Lost Decade." Our internal postmortem on carrier failures, and subsequent research project, both in 2022, unearthed that circa 2015 to date, the insurance industry and other deep pockets were covertly targeted online in an effort to transition what were once policyholder claims into contested or litigated claims. This business model, which we termed "tech-enabled litigation instigation," uses sophisticated online advertising tactics, artificial intelligence platforms, and litigation marketing firms, sometimes funded by third-party investment, to transition what once were policyholder reported claims to contested or litigated status. The emergence of artificial intelligence platforms has exponentially increased the efficacy of this business model. It is also my opinion that billboard, TV and radio advertising can now undermine the reputation of our industry, while the financial damage occurs online."

"Insurer trade associations, particularly those focused on industry reputation, fraud or legal system abuse are critical to restoring the integrity of our industry as well as attracting new talent to our industry," concluded Petrelli.

Adds Sharon Romano Petrelli, CPCU, AIAF, CCP, ARC, vice president and co-founder, Demotech, Inc.: "With billions of dollars of third-party litigation funding available to invest in the proliferation of litigation, and additional billions readied to transform the legal profession through alternative business structures, managed services organizations, and other means, the collective voices within industry trade associations are critical. Your membership and dues are more important today than ever before. Please stay the course."

Trade associations are focused on better futures. When the antagonists of the insurance industry have accumulated billions to deploy, please rethink budget cuts involving trade associations.

About Demotech, Inc. 
Incorporated on September 9, 1985, Demotech, Inc. is a financial analysis firm located in Columbus, Ohio. Demotech serves 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. FSRs assist independent, regional and specialty insurers by leveling the insurer ratings playing field. Over thirty-five years ago, Demotech was the first to have its rating process reviewed and accepted by Fannie Mae, Freddie Mac, and HUD. Since that time, Demotech's FSRs have been leveling the playing field for financially stable insurers of all sizes. Since July 11, 2022, Demotech is registered with the U.S. Securities and Exchange Commission (SEC) as a nationally recognized statistical rating organization (NRSRO) in the class of ratings for Insurance Companies. Visit www.demotech.com for additional information, sign up or view The Demotech Difference. You can sign up to receive a quarterly hard copy of The Demotech Difference by mail at https://www.demotech.com/contact-demotech-2/. Alternatively, you can access current and past issues of TDD online at https://www.demotech.com/research/the-demotech-difference/.

SOURCE Demotech, Inc.