Buffalo-based Adirondack Insurance Exchange, a well-known insurer, has urged its customers to explore other insurance options as the company’s financial situation worsens. Adirondack offers a wide range of insurance products, including home, auto, identity theft and water sports insurance. On July 12, the company announced that it would implement a plan to convert existing policies in response to the withdrawal of its Demotech rating. A letter was also sent to customers urging them to work with their insurance agents to immediately seek new insurance coverage. This unrest follows the withdrawal of its Financial Stability Rating on May 28 by Demotech, Inc., a financial analytics firm. Demotech has not publicly disclosed the reasons for this decision, nor has Adirondack Insurance Exchange made any statement to date. Adirondack Insurance Exchange is managed by Adirondack AIF, LLC, an indirectly wholly owned subsidiary of National General Holdings Corporation, which is an Allstate company. Throughout the entire dilemma, Allstate has merely referred to the statement from Adirondack Insurance Exchange without taking a position of its own.
