Demotech, Inc. is urging insurers and trade association associate members to maintain their memberships as they review 2026 budgets and plan for 2027. Joseph L Petrelli, President and Co-founder, Demotech, Inc., described 2017 to 2026 as the insurance sector's "Lost Decade" and said the firm's 2022 postmortem on carrier failures and related research identified online efforts dating from circa 2015 to date to turn policyholder claims into contested or litigated claims. Demotech called this model "tech-enabled litigation instigation," involving online advertising, artificial intelligence platforms, litigation marketing firms and, in some cases, third-party investment. Petrelli said AI platforms have exponentially increased the model's efficacy and argued that traditional billboard, television and radio advertising can damage the industry's reputation while the financial harm occurs online. Sharon Romano Petrelli, CPCU, AIAF, CCP, ARC, vice president and co-founder, Demotech, Inc., said billions of dollars in third-party litigation funding and additional billions prepared for alternative business structures, managed services organizations and other changes to the legal profession make collective trade association voices especially important. Demotech said associations focused on industry reputation, fraud and legal system abuse are important to restoring the industry's integrity and attracting talent, and asked members to reconsider budget cuts affecting such groups. Incorporated on September 9, 1985, Demotech is a Columbus, Ohio-based financial analysis firm that provides objective and independent Financial Stability Ratings® (FSRs) for Property & Casualty, Life & Health and Title insurers, among others. The firm says its ratings help independent, regional and specialty insurers compete with larger companies. Since July 11, 2022, Demotech has been registered with the U.S. Securities and Exchange Commission (SEC), the U.S. securities regulator, as a nationally recognized statistical rating organization (NRSRO) for ratings of Insurance Companies.