Experts claim catastrophe risk modeling needs to change

The property and casualty insurance business isn’t what it used to be. Traditional methods of deciding risk management worked well in its time. According to the managing director of the Wharton Risk Management and Decision Process Center (WRMDPC) in Pennsylvania, the time has come where changing the way the industry calculates risk is essential to its survival. In the property and casualty sector, the traditional notion was that catastrophic events only occurred about every 25 years or so. It also counted on the fact that the risks were, for the…

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Commercial insurance rates may be on the rise due to 2010 losses

Premiums for commercial lines of insurance are still low, mainly due to an increased amount of insurers offering coverage, and the low amount of consumers looking for providers, and not making claims. Most small and midsized business rates remained the same, while some large companies saw minor decreases. The last two years have been relatively calm for most states, as far as natural disasters go; compared to losses that have occurred in previous years. This has created an increase in capital that insurance companies have had to work with when…

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