Industry News

​Adirondack Insurance Exchange reported today that its financial condition has continued to deteriorate. The carrier is advising its agents to begin replacing its policies with other insurance carriers immediately. As we reported on May 29 and June 18, Adirondack's financial strength rating from rating firm Demotech was withdrawn on May 28. That same day, the carrier emailed its agents reporting a surplus shortage and a deterioration in their capital due to rising loss costs and inadequate rates. Should the carrier reach the point of insolvency, a lengthy legal process must ensue before claim payments will become jeopardized. These are some of the questions we answered…

​The New York State Department of Financial Services is encouraging property-casualty insurance carriers to offer their homeowners insureds free or discounted loss mitigation tools and services. In a new Circular Letter, the department also encouraged carriers, rate service organizations (RSOs, such as the Insurance Services Office,) and the New York Property Insurance Underwriting Association (NYPIUA) to file premium discounts for insureds who use the devices and services.The May 23 letter, signed by Deputy Superintendent of the department's Property Bureau Bernard Ganley, noted difficulties in the current insurance market. The purpose of the Circular Letter, he wrote, was “to reduce risks and costs to ensure a…

​Adirondack Insurance Exchange, an insurance carrier writing personal lines coverages only in New York, has lost its financial stability rating (FSR) from Demotech. The carrier announced the May 28 action to its agents and policyholders that afternoon. Demotech, an Ohio-based financial analysis firm that provides FSRs for insurance companies, did not offer an explanation on its website for the move. Adirondack agents received email notifications late on May 28. The carrier, a member of the Allstate Insurance Group, posted this update for policyholders on its website:“Demotech, Inc., a provider of financial stability ratings of property-casualty insurance companies, has withdrawn its financial stability rating for the…