They're Not Just Your Parents' Florida Premium Payment Any More.
Computer models for Catastrophes have recently come under closer scrutiny everywhere in the United States. No more so anywhere else than Florida. The focus is not so much on the Computer screen as on what information is selectively input into the Computer that ends up on the screen -- and in some Insurance Companies' Rate Hike Requests:
State insurance regulators have questioned why the models used by insurers only look at the past five hurricane seasons -- years that were unusually active and destructive -- instead of a broader period when determining how to set their rates.
* * *
And the National Association of Insurance Commissioners is investigating the models and the way insurers use them to come up with conclusions about risk. Florida Insurance Commissioner Kevin McCarty, who is chairman of the association's property and casualty insurance committee, has promised to give the models special scrutiny as part of his effort to lower homeowners-insurance costs for Floridians.
Anika Myers Palm, "State, Insurers to Clash Over Pricing Model," Orlando Sentinel Central Florida Business p. 30, col. 6 (Mon., January 7, 2008).
More to come.
Please Read The Disclaimer.
Comments