Drier weather, and volatile weather patterns often related to climate change have led insurers to turn to new computer models that provide house-by-house predictions of risk, tracking local topography and brush cover.
“Relying solely on company history leaves many (insurers) exposed,” said Matt Nielsen, Senior Director, Global Governmental and Regulatory Affairs at modeler RMS. A new models launching in 2018 will “revolutionize the way insurers understand and manage risk for wildfires,” he said to Reuters. Consumer advocacy group United Policyholders' California poll found that computer scoring was a reason for a large number of recent policy cancellations.
Massive, out-of-season fires in northern and southern California are causing billions of dollars in claims and challenging expectations of when and where to expect blazes. State law gives insurers more leeway to drop coverage than to raise rates, and some are taking the opportunity, concerning California Insurance Commissioner Dave Jones.
