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Property Catastrophe Insights

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Posts tagged with rates - rates

Updates to severe thunderstorm model help us understand tornadoes

Author SamanthaKimball , 3/17/2014

Guest post by Colin Morris, Analytics Coordinator at NAPCO

Foter / Public domain
I recently visited risk modeling firm AIR Worldwide to learn about the latest updates to their severe thunderstorm model. This model covers straight line wind storms, tornadoes and hail storms and had last been updated five years ago. There was a lack of historical data on these types of storms. Until recently, we didn’t have the technology to properly document and use information about a tornado or severe thunderstorm outbreak. In the past ten years, science has been able to generate new ways to better track wind storms, including tornadoes.

What to expect from property catastrophe insurance pricing in 2014

Author SamanthaKimball , 1/14/2014
ZedZap / Foter.com / CC BY-NC-SA
As detailed in our last State of the Market report, the end of 2013 brought downward pricing trends in the property catastrophe insurance market. Now that the calendar has turned to 2014, we’re looking closely at the year ahead. Our executive vice president Bob Marsh shared his predictions with me:
  • Some markets will resist the call for lower rates—especially on CAT-driven accounts
  • By avoiding these markets or bringing in new capacity—especially primary— rate reductions of 5 to 25 percent might be realized.
  • Reductions may be partially based on the rate magnitude and rate history in the current pricing.
Of course, we don’t have a crystal ball and many factors could affect rates and pricing in the months ahead. What do you think the property catastrophe market will look like for the remainder of 2014? Let us know in the comments or tweet us at @NAPCOLLC.