“Developing a solution to ease the California insurance crisis requires that we first quantify the magnitude of the problem – and relying on history has failed to prepare us for the unparalleled catastrophes that were experienced in places like Coffey Park, Paradise, and so many other communities across the state. We need to use all the tools we have in our arsenal to understand how many different factors affect risk before we can ever hope to find a comprehensive solution. The proposed regulation, which would allow for the use of wildfire and flood catastrophe models for residential property insurance ratemaking, will improve the insurance underwriting process in California. Not only does it allow the state to use the tools that the rest of the insurance industry uses, but it also establishes an independent review process that aims to provide transparency about the scientific appropriateness of these models. “
– Matthew Nielsen, Senior Vice President-Government, Public & Regulatory
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