TALLAHASSEE -- State leaders don't like the way a ratings agency is treating Florida property insurance companies, so they may go shopping for another one.
A joint legislative budget commission will consider spending a million and a half dollars that would look for alternatives to Demotech, which currently rates Florida insurers.
The ratings agency angered top officials and forced regulators to scramble in July, after threatening to downgrade 17 Florida property insurers, which would affect their business with properties mortgaged with Fannie Mae and Freddie Mac.
Demotech ultimately downgraded one firm while withdrawing ratings for two others. One of those companies, United Property and Casualty, then pulled out of the Florida market. Insurance Commissioner David Altmaier and state Chief Financial Officer Jimmy Patronis publicly questioned Demotech. The CFO sent letters to the mortgage companies and the Federal Housing Finance Agency.
The proposal says the money would let the state explore "more predictable and reliable financial rating services" or alternative solutions.
Information from the News Service of Florida was used in this report.
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