The Chicken Little syndrome or catastrophe modeling - an agent's perspective
Article Abstract:
Computer-aided catastrophe modeling can be a useful tool for insurers and underwriters in assessing liability risks and managing exposure in potential high-risk areas. However, some insurance firms have relied too much on it and have overreacted. Projected results from catastrophe models have caused losses in some firms because of their reluctance to write risks in areas deemed too risky. Insurance firms should exercise common sense in interpreting results and base underwriting decisions on other factors such as history and construction.
Publication Name: CPCU Journal
Subject: Insurance
ISSN: 0162-2706
Year: 1997
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Catastrophe modeling and rate filings - the Florida experience
Article Abstract:
The Florida Commission on Hurricane Loss Projection Methodology was formed to settle the disputes concerning the use of computer-aided catastrophe models in assessing damage brought by hurricanes. Computer modeling can be a useful tool in evaluating damage and losses from natural disasters, however, they are not necessarily completely accurate. The method relies on historic data over a period of 100 years to project losses and structural damage but cannot simulate actual wind conditions in particular areas.
Publication Name: CPCU Journal
Subject: Insurance
ISSN: 0162-2706
Year: 1997
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The impact of consolidation and vertical integration in the reinsurance industry
Article Abstract:
The US reinsurance industry is experiencing two trends that have Europe-based reinsurers worried about their ability to compete with the former. The first trend involves the consolidation of reinsurance companies, which is being fostered by the demand for reinsurers with larger reinsurance and underwriting capabilities and has led to the creation of new reinsurance products. The second involves the larger number of reinsurance companies with primary insurers within their financial holding companies.
Publication Name: CPCU Journal
Subject: Insurance
ISSN: 0162-2706
Year: 1996
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