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Article: Modeling helpful but no substitute for underwriting.
- Article from:
- Business Insurance
- Article date:
- September 26, 2005
- Author:
CopyrightCOPYRIGHT 2005 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: REGIS COCCIA
MONTE CARLO, Monaco-As catastrophe modeling companies quickly revised their estimates of insured damage from Hurricane Katrina earlier this month, questions about the adequacy of the models arose during the annual Rendez-Vous de Septembre reinsurance gathering.
Risk Management Solutions, for example, issued an estimate ranging up to $60 billion after giving an initial estimate of $25 billion shortly after the storm. EQECAT and AIR Worldwide Corp. issued estimates ranging from $15 billion to $25 billion.
Sources interviewed in Monte Carlo agreed that modeling risks is important but stressed that models are not a substitute ...