COLUMBUS, Ohio, July 3, 2024
/PRNewswire/ -- Joseph Petrelli,
President, Demotech, Inc., who authorized and initiated Demotech's
ground-breaking research project in March
2022 notes with pride, "Demotech's research,
undertaken by Todd Kozikowski,
identified the business model that exacerbates many critical issues
the insurance industry faces. As private equity, litigation
financing, and non-lawyers utilize alternative business structures,
permitted in Arizona since 2020,
to secure ownership in law firms, tech-enabled claim instigation
has emerged as a national, company specific threat."
![Demotech, Inc. (PRNewsFoto/Demotech, Inc.) (PRNewsfoto/Demotech, Inc.) Demotech, Inc. (PRNewsFoto/Demotech, Inc.) (PRNewsfoto/Demotech, Inc.)](https://mma.prnewswire.com/media/331856/demotech__inc__logo.jpg)
Todd Kozikowski, Co-founder, CEO,
4WARN shared, "When Joe Petrelli reached out to me regarding
the acceleration of contested claims in Florida for several carriers that became
impaired, I assumed this was a local weather-induced,
geo-centric event. However, investigating the targeting tactics of
opportunists led to a nationwide discovery: nearly all
insurers and lines of insurance are being targeted. Additionally,
the business model of 'tech-enabled claim instigation' was
confirmed for the insurance industry as well as nearly every
industry. Today, Arizona and
other jurisdictions that authorize alternative business structures
may be opening the flood gates."
Having initiated the research that discovered tech-enabled claim
instigation in March 2022, we have
prepared this summary as a primer on the topic of social inflation,
nuclear verdicts, and increased claim frequency, and to share
preliminary thoughts on litigation financing:
https://www.demotech.com/pdfs/dt_releases/Demotech_4Warn_TECI_business_model.pdf.
About Demotech, Inc.
Established in 1985, Demotech, Inc. is a financial analysis firm
located in Columbus, Ohio.
Demotech provides objective and independent Financial
Stability RatingsĀ® (FSRs) for Property & Casualty
insurance companies, Life & Health insurance companies,
and Title underwriters, among others. As the first
company to have its rating process formally reviewed and accepted
by Fannie Mae, Freddie Mac, and HUD, Demotech has been leveling the
playing field by offering FSRs to insurers of all sizes. As
of July 11, 2022, Demotech is
registered with the U.S. Securities and Exchange Commission as a
nationally recognized statistical rating organization (NRSRO) in
the class of ratings for insurance companies. Visit
www.demotech.com for additional information.
About 4WARN, Inc.
4WARN is an analytics and services organization delivering
the first risk intelligence data to identify, assess, and mitigate
litigation targeting and claims instigation. Our solutions are used
by insurers, MGAs, reinsurers, transportation and logistics
companies, and departments of insurance to evaluate litigation
risks. As a team of insurance and analytics experts, 4WARN is
dedicated to raising awareness and analyzing tech-enabled claims
and litigation. Leveraging billions of data points, we monitor,
track, report, educate, advocate, and empower organizations with
data-driven insights to regain control of client interactions.
Visit www.4WARN.com for additional information.
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SOURCE Demotech, Inc.