NAIC Property & Casualty Insurance (C) Committee Public Hearing Regarding Catastrophe Modeling

The National Association of Insurance Commissioners (“NAIC”) has issued a notice of a Property And Casualty Insurance (C) Committee Public Hearing Regarding Catastrophe Modeling, to be held Friday, September 28, 2007 in Washington D.C. from 1-5 p.m.

The Hearing, which is addressed to members of the NAIC, the NAIC’s Property and Casualty Insurance (C) Committee, Catastrophe Insurance (C) Working Group, Terrorism Insurance Implementation (C) Working Group and interested regulators and other parties, will be held in conjunction with the NAIC’s Fall National Meeting.

The purpose of the Hearing is to address the Committee charge related to catastrophe modeling, which is to:

• Gather information on the appropriate regulatory framework for monitoring the activities of catastrophe risk modelers;
• Explore whether laws and regulations governing rating or advisory organizations are broad enough to be applied to catastrophe modeling vendors;
• Investigate recent changes by catastrophe modelers to shorten the time period used in hurricane models and consider whether scientific evidence supports these methodology changes;
• Explore whether a public model would be beneficial to assist insurance regulators in monitoring the activities of catastrophe modeling vendors and insurers that use the catastrophe loss cost information in their rating systems; and
• Make recommendations regarding the appropriate regulatory framework, the appropriateness of the use of a reduced experience period in hurricane models, regulatory best practices for monitoring the activities of modelers and insurers’ use of modeled output and whether a public model should be developed by the 2007 Winter National Meeting.

The September 28 Hearing will be in the Washington 3—Exhibition Level conference room at the Marriott Wardman Park, 2660 Woodley Road, NW, Washington, DC.

Additional information about the NAIC Fall National Meeting is available at www.naic.org

 

Should you have any questions or comments, please do not hesitate to contact this office.