The extent to which opinions are input into Computer Models of Hurricane and other Catastrophe Claims is in shadows. Until now -- perhaps.
Four "firms" that sell the output of these Computer Models to justify Premium Increases for Catclaim Coverage have agreed "to release hurricane loss projects models for review" by the Florida House of Representatives, a press release issued today by the Florida House asserts: "Modeling Firms Agree to House Request" (Florida House of Representatives Press Release January 11, 2007).
This is a welcome development. It may represent public disclosure of acts previously done in darkness. Attention focused in testimony and also in an Open Letter to the Florida Legislature, posted here on January 4, 2007, that certain Computer Models are tossing away facts in favor of inputting opinions of anonymous persons. These 'models' are used to justify Premium Increases on Florida Homeowners and Businesses, and they are run by people from outside of Florida. Listed in today's Press Release, none of the four organizations is located in Florida.
According to today's Florida House Press Release, the four paid organizations are joined by the Florida Office of Insurance Regulation which also responded to a request "to release copies of their hurricane loss projection models and the underlying assumptions contained in those models to the [Florida] House for review."
The Florida Legislature will meet in Special Session beginning on Tuesday, January 16, 2007 to address the Florida Property Insurance Crisis.
REMINDER: THE CONTENTS OF THIS BLOG DO NOT MAKE AN ATTORNEY-CLIENT RELATIONSHIP. ALWAYS CONSULT THE CASES AND LAWS OF EACH PARTICULAR JURISDICTION AND AN ATTORNEY FAMILIAR WITH THE PARTICULAR INSURANCE ISSUE IN THAT JURISDICTION, WHENEVER YOU TRY TO ADDRESS OR RESOLVE ANY LEGAL QUESTION.
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