Insurers have become too dependent on catastrophe models when deciding which risks should be cancelled and which ones are acceptable, Karen Clark, founder of the first cat modeling firm, warned at an industry gathering in New York City.
Karen Clark, president and chief executive officer of Karen Clark & Company, said that while insuring cat risks poses significant challenges for carriers, there are also opportunities.
However, she cautioned that those opportunities may be wasted as insurers cancel risks based solely on results of models, rather than taking the time to underwrite individual risks–especially as legislative proposals seek to make windstorm coverage the domain of the federal government.
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