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Columbus, Ohio, January 11, 2022 / PRNewswire / – As of 2001, the Actuarial Opinion Statement regarding the provisions for net claims and claims settlement costs carried on the balance sheet of a P&C insurer as well as the provisions for gross claims and LAE prior to the application of the reinsurance required the actuary’s perspective on material adverse deviation risk (RMAD). Essentially, it is a question of whether the ultimate loss and LAE reserves will differ from the loss carried forward and LAE reserves by the dollar amount selected by the actuary as “material”.

Accredited professionals review the market in which a carrier operates, establish a materiality standard, describe the rationale for the standard, and, when analyzing the insurer’s operating environment, summarize the risk of Material unfavorable deviation of losses carried forward and LAE reserves relative to ultimate loss and LAE reserves. Historically, a variety of justifications have led professionals to one of two conclusions: yes, there is RMAD, or no, there is no RMAD.

For carriers focused on that of Florida home insurance market, market described as “disastrous” by one of the professionals responsible for regulating the market, the question at the end of 2021 will be “a risk of significant adverse deviation is it likely? If yes, why ? Why not?”

Help others understand the residential property insurance market by Florida, to December 14, 2021, Joe petrelli, Demotech, Wes Todd, squire, CaseGlide, Lisa miller, Lisa Miller & Associates, and Guy Fraker, Crea8tefutures Advisory and Consultancy discussed excerpts from public statements made by David Altmaier, Barry gilway, Simon white, and Tasha carter. They also shared their views on the operational environment of that of Florida home insurance market.

Petrelli noted that a tactile review of public information related to actuarial opinion statements regarding carriers operating in virtually identical markets in Florida revealed that some actuaries have expressed concerns about the RMAD and others have not.


Todd noted that it might be advantageous for an actuarial review of loss provisions to have a stratification and delineation of losses by type of loss, cause of loss, and perhaps even by claims adjuster and plaintiff’s lawyer. This information is readily available to actuaries who comment on the loss provisions for CaseGlide customers.

Miller noted that public testimony from Altmaier, Gilway, Blank and Carter seemed to indicate that the carriers’ operating results were focused on insuring residential property in Florida had been volatile and difficult for many years.

According to Fraker, “by almost any traditional definition or measurement, that of Florida the home damage insurance market no longer exists, having been replaced by a fabricated litigation market. As a result, more than $ 4.5 billion annually is redistributed away from Florida inhabitants, Florida insurers, insurance investors and that of Florida economy.”

Others focused on that of Florida the home insurance market may wish to review the webinar recording. The recording is available at

On Demotech, Inc.

Demotech, Inc. was the first firm to review independent, regional and specialist insurers. Since 1985, Demotech has served the industry by assigning Accurate, Reliable and Proven® Financial Stability Ratings to P&C insurers and underwriters. FSRs provide an objective basis for an insurer’s solvency. Demotech’s philosophy is to review and assess insurers based on their area of ​​interest and the execution of their business model rather than just on their financial size. Demotech’s increase in accreditations and acceptances has led to its review of more than 450 insurers operating in the United States. Visit for more information.

On that of Florida Residential insurance market

that of Florida Property & Casualty Insurance Market: Spiraling Into Collapse “, was written by Guy Fraker, Cre8tfutures Innovation System & Consultancy. He felt that that of Florida the property insurance market is “collapsing” and requires immediate attention if there is a chance to protect the market, consumers and ultimately the state economy. The report identifies the state’s “litigation economy” as the main contributor to insurance market problems, as opposed to numerous weather events Florida endured.

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