Here is the biggest problem as I see it. The last minute realization that the actuarial claims reserves are probably so severely inadequate that they have to stop and get outside input grabs the attention of AM Best and regulators much more quickly than a warning in advance with a plan in place. This means, usually one of two things: Either management had been clueless about the reserves, or they knew and were trying to hide it. Both will create angst with the rating agencies and I fully expect a downgrade is in the future.
Agree we may very well see a downgrade. One must question their reserve policy. Supervison? File reviews? Do they audit claim files and reserves when acquiring another company. Many questions with management.