New hurricane model shakes up insurance market

Business Insurance reports that Risk Management Solutions Inc.'s U.S. catastrophe model has questioned the role of modeling for insurers on whether models are being too much used. Bill Kennedy, CEO of global analytics and advisory for Guy Carpenter & Co. L.L.C. in New York, declared: "Our view is that the models themselves are probably far more influential than they should be in the marketplace." This is a view that is not encouraged as models do not provide an absolute answer to risk according to Tom Larsen, product architect for EQECAT Inc. in Oakland, Calif.