SageSure and SURE prevent coverage disruption for more than 42,000 FedNat customers
It's part of SageSure's Promise to provide highly rated continuous capacity
When Demotech downgraded FedNat’s Financial Stability Rating® from “A” (Exceptional) to “S” (Substantial), a rating that doesn’t meet the insurance requirement for Fannie Mae and Freddie Mac mortgages, thousands of policies were at risk of interrupted coverage.
We understand the challenges of the tightening property insurance market where many insurers have little appetite for coastal risk. Leveraging our market expertise and promise to always provide highly rated coverage and continued capacity, we transitioned the FedNat policyholders at risk of losing coverage to SURE.
SURE, a member-owned reciprocal insurance exchange rated A, Exceptional, by Demotech, was well-positioned to assume these policies and ensure access to highly rated coverage due to its strong financial position and more than $550 million in catastrophe reinsurance protection.
“We responded to FedNat’s downgrade by expediting the transfer of exposure from FedNat to SURE as quickly as possible while honoring our commitments to reinsurers,” said Terry McLean, co-founder and CEO of SageSure. “Our team has worked incredibly hard to ensure homeowners have reliable, continuous protection for their most valuable asset.”
A large cross-functional team at SageSure navigated many moving parts to offer coverage from SURE to virtually every FedNat policyholder across five states.
All FedNat policyholders in Alabama, Mississippi, South Carolina and Texas were offered the opportunity to novate to SURE effective July 1. On October 27, remaining FedNat policyholders were automatically transitioned to SURE. In Louisiana, eligible FedNat policies were canceled and rewritten with SURE on July 1.
“These risks were underwritten by SageSure and are a strong fit for our portfolio,” said Ed Konar, president of SURE. “We’re excited to welcome our new policyholders, and we’re grateful to the regulatory agencies in each state for the support and assistance with this transition.”
In the last year, insolvencies and non-renewals by coastal property insurers have left more than 341,000 policyholders without coverage with compounding implications across multiple states. SageSure and SURE can consistently serve cat-exposed markets because of their rigorous underwriting approach and superior risk segmentation.
SageSure is built to solve challenges, while providing highly rated coverage for homeowners and business owners in challenged markets and being there for customers when they need us most. Thank you to all our producer partners for supporting us throughout this transition.