Insurers should use multi-model approach to reduce catastrophe model uncertainty
Posted on December 5th, 2011
2011-12-08
Insurers can reduce catastrophe model uncertainty and better estimate risk by adopting a multi-model approach, a Guy Carpenter report says.
In Managing Catastrophe Model Uncertainty: Issues and Challenges, Guy Carpenter examines three strategies for using multiple models to narrow the “uncertainty band” inherent with the use of cat models.
The uncertainty band is the plausible range above and below the cat model’s probable maximum loss (PML) estimate in which the true (but unknown) value may fall.
Advances within the modelling industry have reduced the width of the uncertainty band, Guy Carpenter says. But as insurers consider smaller areas of geography, additional uncertainties are introduced.
Tags: Catastrophe Model, Catastrophe Model Uncertainty, Model, Model Uncertainty
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Reading Over Your Auto Insurance Coverage After An Accident
Posted on December 4th, 2011
When you get into an accident with your car, it can seem like the end of the world. Assessing vehicle damage will tell you exactly what type of claim it will be. Auto insurance coverage will take care of most if not all of the damage, but you need to read the coverage so you know how to make the claim.
It doesn’t matter what kind of accident you’re involved in, you want your auto insurance company to take care of the damages. Before you call up your company to make a claim, you need to get out your auto insurance coverage and read through it.
Tags: Accident, Auto Insurance, Auto Insurance Coverage, Insurance Coverage
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Farmers Settles Class-Action Lawsuit over Medical Payments
Posted on December 1st, 2011
An Oklahoma court has approved a settlement in a nationwide class action lawsuit filed by Farmers Insurance auto policyholders who claim the company shortchanged them on claims for medical expenses filed in the wake of auto crashes.
Under the terms of the settlement, approved earlier this week by the District Court of Canadian County, the insurer has agreed to pay four named plaintiffs $7,500 each for representing the class and to cover $6.5 million in attorney fees and other costs, but does not admit any wrongdoing.
The plaintiffs had alleged that Farmers improperly failed to pay reasonable medical expenses because of the company’s use of “certain systems and procedures” for claims adjustment in payment of medical benefits.
“We are pleased to have been able to resolve this matter with plaintiffs,” Jerry Davies, a Farmers spokesman in Los Angeles, said in an email Friday. Davies wo
Tags: Lawsuit Medical, Medical
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Are Fuel Efficient Cars Good for your Car Insurance?
Posted on November 29th, 2011
Fuel efficient cars are becoming more and more popular as concern starts to grow about the environment – and the impact of driving on motorists’ wallets. One question that is asked about fuel efficient cars is whether or not they can help you to save money on your car insurance.
There are some signs that having a fuel efficient car can indeed help you save money on your car insurance, largely because an increasing number of car insurance companies are offering discounts or special rates for motorists who have one of these cars. This means that if you have a fuel efficient car, it is worth taking a look at different car insurance policies to see whether you are able to get a special rate for the type of car you own.
However, having a fuel efficient car is not by itself always enough to get you a good deal on car insurance as other factors are also taken into account. Thi Read more…
Regulations and limitations placed on firms offering individual health coverage
Posted on November 27th, 2011
Most insurance companies have limitations when it comes to providing individual health insurance coverage for individuals with preexisting conditions. This has led to people believing that it is impossible to get covered for any preexisting condition. What people do not know is that insurance companies provide coverage for some preexisting conditions although they have limitations when it comes to the policy.
There are mile laws and regulations that mange individual health coverage one of the regulations is in relation to preexisting conditions. Regulations as pertains to this issue, vary from state to state. Read more…
Ontario Risk Sharing Pool shows signs of improved results in 2011 H1, a possible indicator of effectiveness of auto reforms
Posted on November 26th, 2011
Ontario’s Risk-Sharing Pool (RSP) and Facility Association Residual Market’s auto loss ratios showed signs of improvement in the first half of 2011, possibly indicating a positive effect of the 2010 auto reforms, said Graham Gersdorff, senior valuation analyst at the Facility Association.
Gersdorff spoke at KPMG’s 20th Annual Insurance Issues Conference in Toronto on Nov. 24. He offered insights into whether or not the 2010 auto insurance reforms are helping to stem soaring loss ratios.
Gersdorff offered several caveats and insisted it is still too early to draw a concrete conclusion as to whether or not the improvement of loss ratios in both the RSP and FARM are a result of the reforms. But by looking at the data, one could infer the possibility that the reforms are having a positive impact, he said.
Tags: Auto, Sharing Pool
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