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Click bate aside, good article from the Insurance Journal
Barring Change, Allstate May Exit California Property Market Completely
The topic of a recent California insurance department workshop was the potential use of catastrophe modeling in ratemaking, but carrier representatives and consumers took the opportunity to air concerns about other problems in the state’s insurance market.
The state’s growing availability crisis is poised to get worse unless changes beyond the introduction of forward-looking catastrophe modeling to ratemaking take hold, carrier executives said.
“Change is critical to restoring the health to the California insurance marketplace and [to] avoiding increased nonrenewals and further carrier withdrawals from the state,” said Parr Schoolman, chief risk officer of Allstate Property and Liability, during the four minutes of remarks he delivered during a four-hour public workshop that was broadcast via Zoom and Facebook on July 13. Among the changes Schoolman advocated were actions to speed up rate filing approvals and to allow insurers to include the costs of reinsurance in their rate indications.
“Without pricing enhancements, Allstate will remain closed to new business and will evaluate additional nonrenewals or the full withdrawal of property lines from the California market,” he stated, concluding his testimony.
Full Article here
Barring Change, Allstate May Exit California Property Market Completely
The topic of a recent California insurance department workshop was the potential use of catastrophe modeling in ratemaking, but carrier representatives and consumers took the opportunity to air concerns about other problems in the state’s insurance market.
The state’s growing availability crisis is poised to get worse unless changes beyond the introduction of forward-looking catastrophe modeling to ratemaking take hold, carrier executives said.
“Change is critical to restoring the health to the California insurance marketplace and [to] avoiding increased nonrenewals and further carrier withdrawals from the state,” said Parr Schoolman, chief risk officer of Allstate Property and Liability, during the four minutes of remarks he delivered during a four-hour public workshop that was broadcast via Zoom and Facebook on July 13. Among the changes Schoolman advocated were actions to speed up rate filing approvals and to allow insurers to include the costs of reinsurance in their rate indications.
“Without pricing enhancements, Allstate will remain closed to new business and will evaluate additional nonrenewals or the full withdrawal of property lines from the California market,” he stated, concluding his testimony.
Full Article here
