Until recently, homeowners insurers weren’t allowed to use catastrophe models to justify needed rate increases, or to include the cost of reinsurance in their rate indications in the state of California.
While that changed late last year when Commissioner Ricardo Lara announced new regulations allowing both as part of his Sustainable Insurance Strategy, carriers don’t like the tradeoff they’re being asked to agree to in order to take advantage of the reforms, a trade group representative said last week.
Related articles: California Commissioner Announces Regulation to Enable the Use of Modeling in Rates; California Commissioner