Insurance industry expected to react to Boston Marathon bombing

Insurance industry News

Bombing sends ripples throughout insurance industry The Boston Marathon was held in Massachusetts earlier this week and served as the scene for a gruesome attack that claimed the lives of three people and left over one hundred wounded. Three bombs went off at the finish line of the Boston Marathon fairly late into the event. U.S. officials are still investigating the event, hoping to unearth details leading to the apprehension of the responsible party. While the investigation may not have an immediate solution, the Boston Marathon bombings may have a…

Read More

Insurer’s move away from RMS hurricane model amidst controversy

Hurricane risk models were a popular subject for insurers this week during the annual meeting of the Property Casualty Insurers Association of America. Earlier in the year, risk modeling agency Risk Management Solutions (RMS) introduced revisions to its U.S. hurricane model. The changes generated some controversy when they were first announced, but have since become an all-encompassing issue for property insurers in coastal regions. These insurers expressed their discontent for the new model during the meeting, citing multiple factors that have made it more costly to do business in the…

Read More

Risk Management Services hurricane catastrophe model approved by Florida Commission

The residential property insurance marketplace in the state of Florida is expected to face an even greater amount of volatility after the modeling commission for the state approved the use of a new catastrophe model by Risk Management Services (RMS).  The RMS U.S. Model Version 11.0 was approved by the Florida Commission on Hurricane Loss Projection Methodology, which allows insurance companies to use it for the calculation of the potential exposure to hurricane loss.  That said, this model has not been without controversy, especially in terms of its changes to…

Read More