RMS withdraws 5-year hurricane model from consideration in Florida, industry spokesman says state is in ‘wholesale denial’

This story from the Insurance Journal shows some pay-off for Florida Gov. Charlie Crist’s political pressure on insurers: Risk Management Solutions, one of several companies that calculate risks for insurers, has withdrawn its controversial five-year hurricane risk model from consideration by Florida regulators.  State officials want hurricane risks to be calculated over a 100-year period, because it will result in a reduction of the estimated risk and theoretically, a reduction in property insurance premiums.  Industry spokesman Bob Hartwig points out that Florida’s own actuarial assumptions — reflected in the insurance package passed by the Legislature earlier this year that leaves Florida taxpayers more exposed than Britney Spears in a tabloid photograph — are wildly optimistic, more optimistic than any hurricane risk model on the market.

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