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SureChoice Underwriters Exchange Partners with SageSure Launching Innovative Homeowners Insurance Solutions in California

COLUMBUS, Ohio, March 19, 2024 /PRNewswire/ -- In a move that paves the way for more resilient homeowner insurance solutions in wildfire-prone regions, SureChoice Underwriters Reciprocal Exchange (SURE), a policyholder-owned insurer, in conjunction with SageSure, an industry leader in managing general underwriting focused on high-risk markets, proudly announced the release of its surplus lines homeowners insurance products across California. This marked debut positions SURE as the pioneering Demotech-rated insurance provider within the state to roll out such a comprehensive offering. Additionally, SURE has achieved an A-rated, Exceptional Financial Stability Rating®.

As circumstances stand, SURE's product could not be timelier for California homeowners. With seven of the state's primary insurers limiting coverage or retracting completely as a response to increased wildfire threats, the urgency for alternatives in the private insurance market is more apparent than ever. SURE's initiative is a much-needed breath of fresh air, filling the gap and providing much-needed insurance capacity within California.

Demotech has a longstanding history as the financial analyst firm of choice for specialty and regional insurers. The company first set an industry precedent in 1989, when it became the inaugural firm to appraise and bestow ratings on independent regional and specialty insurers. Today, with SURE bringing its surplus lines homeowners insurance to California's market, it embodies the first Demotech-rated entity to do so, reflecting both the evolution and the company's commitment to facilitating essential insurance solutions in regions with the greatest need.

Speaking of the pivotal role played by Demotech, President Joseph L. Petrelli states, "Demotech indisputably upholds a nationwide reputation for its keen ability to pinpoint financially consistent insurers. For numerous years, we've stood as the reputable assessment firm for insurers extending services to the most demanding territories. The arrival of SURE and SageSure in California's market is a promising development we enthusiastically support, as they deliver their specialized expertise to homeowners in need."

Unveiling Demotech, Inc. – Innovators in Financial Stability Analysis

Since its establishment in 1985, Demotech, Inc. has made significant strides in the specialization of evaluating the stability of regional and specialty insurance companies. The firm has been instrumental in heightening the industry standard by introducing Financial Stability Ratings® (FSRs), a metric now central to insurance analysis. Unlike other ratings agencies that focus on the size of an insurer's balance sheet, Demotech's distinct approach is to scrutinize an insurer's execution of its business model along with its market-specific acumen. This innovative perspective has led Demotech to become the forerunner in assessing independent regional and specialty Property and Casualty insurers, having rated over 460 insurance entities operating within the United States.

Adding to its impressive repertoire of services, Demotech boasts current registration with the U.S. Securities and Exchange Commission as a nationally recognized statistical rating organization (NRSRO) for insurance company ratings. Achieved as of July 11, 2022, this accreditation underscores the thorough and reliable nature of the company's analytical methodology. More insights about the company's ratings, philosophy and comprehensive services can be explored on their website at Demotech.com.

SageSure – A Vanguard in Catastrophe-Exposed Property Insurance

In a similar vein, SageSure was established with the objective of reimagining how Americans secure their property against unforeseen catastrophes. Founded in 2009, SageSure has since been at the forefront, ensuring that comprehensive products, excellent customer experiences, and robust underwriting are accessible even in the most challenging insurance terrains. Serving 14 states, and catering to myriad insurance needs including home, flood, and commercial lines, SageSure operates on behalf of carrier partners who pride themselves on high ratings.

Boasting an impressive figure of more than $1.4 billion in inforce premium, SageSure not only insures half a million policyholders but also sustains a workforce of 700 employees nationwide. This unrivaled growth and reach confirms SageSure as the United States' largest residential property insurance managing general underwriter (MGU). To discover more about SageSure's pioneering products and services, interested parties are encouraged to visit their website at SageSure.com.

While the partnering of SURE and SageSure stands as a testament to industry innovation, it is the tangible impact of this alliance that resonates with California homeowners. As the realities of climate change make themselves increasingly felt through the rising frequency and intensity of wildfires, traditional insurance models are being pressured to evolve. This collaboration reflects a strategic foresight, prioritizing not only the financial stability of insurance offerings but also the accessibility of these products to those living in the most vulnerable regions.

California's insurance landscape has been particularly turbulent in recent years, necessitating a fresh approach to coverage that can keep pace with changing risks. This foray by SURE and SageSure can be seen as a proactive step towards stability for a state that is caught frequently in nature's crosshairs. By leveraging Demotech's analytic proficiency and embracing SageSure's innovative insurance products, SURE is facilitating a new standard for homeowners looking to protect their property against the potentially devastating effects of natural disasters.

The endorsement by Demotech of SURE's financial stability—a company that now bears an Exceptional, A-level Financial Stability Rating®—is a clear signal to the marketplace that resilience and reliability are within reach for California homeowners. Faced with the exodus of some of the largest insurers due to growing wildfire risks, SURE's emergence fills what could have become a significant void in the California insurance market. This movement is not only beneficial for the policyholders of today but also sets a precedent for the oversight of similarly exposed markets in the future.

With SURE's products now accessible, homeowners can breathe a sigh of relief knowing that despite the retrenchment of major insurers, their ability to secure comprehensive and stable insurance coverage remains unhampered. The strategic foresight demonstrated by SURE through the selection of areas that are both in need of coverage and susceptible to catastrophe underscores the company's dedication to serving markets with the most pressing insurance needs.

Demotech's role extends beyond merely providing ratings. It serves as a universal badge of credibility, reassuring all stakeholders from policyholders to regulators, that insurers like SURE maintain a solid foundation and a viable strategy for managing risk in volatile climates. As a newly christened NRSRO, Demotech's insights are more valuable than ever, offering an authoritative perspective on the financial fortitude that insurance companies must uphold.

For residents in California and other catastrophe-prone regions, the partnership of SURE and SageSure, underpinned by the recognition from Demotech, Inc., represents not just an insurance option, but a crucial layer of security in an unpredictable world. It symbolizes a renewed commitment to safeguarding their homes and livelihoods, a testament to the fact that even when nature's fury present itself, they will not stand alone.

In summary, the bold strides taken by SURE and SageSure, with the analytical backing of Demotech, Inc., are rewriting the narrative of insurance within high-risk regions. Innovating against the backdrop of changing environmental dynamics and insurance market fluxes, this alliance points to a future where stability for homeowners comes hand-in-hand with adaptability and financial resilience. As California navigates the challenges presented by natural disasters, this partnership emerges as a blueprint for how insurance can evolve to meet the demands of the times.

We stand on the cusp of a new era where the insurance industry redefines its bounds, and pioneering companies like SURE, in conjunction with the visionary approach of SageSure and supported by the financial acumen of Demotech, take charge in stitching together a safety net for homeowners that is both robust and responsive to the growing perils of climate extremes.

As we move forward, eyes will no doubt be trained on California's evolving insurance market, watching how it adapts, thrives, and possibly serves as a case study for similarly exposed regions across the globe. In the meantime, the collective efforts of SURE, SageSure, and Demotech, Inc. showcase a dedication to economic sustainability and community resilience that not only provides coverage but also promises continuity in the face of adversity.

While SURE and SageSure continue to extend their reach, ensuring that homeowners throughout California enjoy the peace of mind that comes with secure insurance, Demotech's role in cementing the credibility of these firms reinforces an infrastructure capable of withstanding the inevitable trials of nature. Together, they delineate a beacon of hope and reliability—a signal that amidst the ebbs and flows of our climate's temperament, the institutions we rely on are evolving to keep us safe and insured.

In closing, California's recent history with wildfires serves as a stark reminder of our vulnerability to natural disasters. It underscores the critical importance of innovation and collaboration among insurance entities like SURE and SageSure, with the endorsement of rating agencies such as Demotech, Inc. Their combined efforts are not merely commendable; they represent the front line of defense in preserving the American Dream against the unfolding challenges of the 21st century.