Demotech, Inc.: Hit pieces are the price we pay for thought leadership and excellence
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COLUMBUS, Ohio , Aug. 14, 2025 ~ Demotech, Inc. Celebrates 40 Years of Success in the Insurance Rating Sector

On September 9, 2025, Demotech, Inc. will mark its 40th anniversary since entering the insurance rating sector. Founded by Joseph L. Petrelli and Sharon Petrelli in 1985, Demotech has established itself as a leading independent insurance rating service with a proven track record of carrier survival.

In a statement released by Demotech President and Co-founder Joseph L. Petrelli, he highlighted the company's verified track record on carrier survival, measured by both gross impairment rate and net impairment rate. He stated that at comparable rating levels, Demotech's results rival any other insurance rating service.

Petrelli also addressed recent media push back on the company's ratings, stating that despite a decades-long track record as good as anyone's, there are still hit pieces and resistance to multiple competent rating agencies, including Demotech.

"In 1989, we entered the insurance rating sector by demonstrating that independent, regional and specialty insurers could be reviewed and rated," Petrelli shared his opinion. "Our process analyzed their business model, execution of that business model and the complementary nature of the applicable reinsurance program."

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He also mentioned that despite being targeted by hit pieces due to their unique approach of reviewing and rating more insurers in the US than any other alternative to the functional monopoly, any false or biased information can be refuted with facts readily available to both authors of hit pieces and Demotech.

"As the first to review and rate independent, regional and specialty insurers back in 1989, we have a long and important history," Petrelli added. "Our rated carriers have added capacity to property insurance, title insurance and senior care markets in every state."

He also pointed out that many "Demotech alumni" – carriers that are now publicly traded but were initially rated by Demotech – write billions of dollars of coverage protecting trillions of dollars of value in the US.

Sharon Petrelli, CPCU, AIAF, CCP, ARC, Demotech vice president and co-founder, also addressed the recent media push back and encouraged anyone with questions to contact the company directly.

"If anyone has a question about anything that they have read or heard, contact us and ask your question," she said. "As Winston Churchill once said, 'A lie gets halfway around the world before the truth has a chance to get its pants on.' Arthur Schopenhauer said: 'All truth passes through three stages: First, it is ridiculed; second, it is violently opposed; and third, it is accepted as being self-evident.' That Demotech more than holds its own on insurer ratings has it passing through stage two – violently opposed. We are headed toward 'self-evident' as the facts emerge and speak for themselves."

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She also addressed the creation of "counterfactual ratings" as a surrogate for A.M. Best ratings to be compared to actual Demotech ratings. These made-up ratings were never promulgated or issued and were used to sway public opinion by presenting biased information in a way that appears objective.

"Why make up ratings, imply they would have been assigned by another entity, and then compare the made-up ratings to actual ratings when hundreds of actual ratings are readily available?" Sharon Petrelli questioned. "Head-to-head comparisons of factual ratings issued by both parties would have presented the complete opposite of the comparison of made-up ratings to our actual ratings. Reality was inconsistent with the narrative, so counterfactual ratings needed to be generated."

In conclusion, Demotech invites comparisons and analysis based on facts as those opposed to competition in insurer ratings continue to try and eliminate them despite their proven track record. As Petrelli stated: "Demotech more than holds its own on insurer ratings."
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