Florida Catastrophe Model Proposal Dialed Back
A proposal that would have allowed Florida property insurers to use multiple models when calculating a potential loss tied to a hurricane has been stripped out of legislation, but language that would more than double the time use old model data remains in play.
Florida Senate Bill 258, introduced by Republican Sen. Jeff Brandes, originally allowed property insurers to use “a straight average of models in rate filings” determined by the Florida Commission on Hurricane Loss Methodology. According to the legislation, the proposal would require Florida’s Office of Insurance Regulation to consider projections of hurricane losses estimated “using a straight average of model results or output ranges, independently found acceptable or reliable.”
However, as the legislation was molded into a joint version with the Florida House of Representatives the multiple model proposal was dropped, according to people familiar with the matter.
Remaining in the legislation is language is a proposal that would insurers to use “the previous version of a model for up to 180 days after the new version is approved”, from its current 60 day timeline, meaning that the insurers “ not required to use the newest version of an approved hurricane model.”
The bill is currently sitting the Florida Senate’s Banking and Insurance Committee.
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