Thank you for the opportunity to respond to the
For the past twenty-five plus years, Demotech has collected and reviewed insurer specific data associated with the physical risks insured by carriers (real properties) and the exposure of those risks to catastrophic loss including related loss adjustment expense to review and settle claims presented by insured. As the number and ferocity of catastrophic events, whether wildfire, flood, convective storm, hurricane, etc., has increased, the financial impact of this phenomenon on residents and insureds has been higher costs of reinsurance being passed on to the purchasers of insurance, whether consumers or businesses, through higher premiums.
I have a few thoughts on the data collection process outlined by the FIO. These thoughts reflect our position as the very first to review and rate independent, regional and specialty insurers. Regarding the threshold of
I attach some of the company specific data gathering formats that we have utilized to evaluate catastrophe exposure and the impact of climate change on the insurance market. We believe we were the first to expand the horizontal component of annual catastrophe reinsurance programs so as to include more weather events in a single year. This response to the adverse impact of climate change was implemented more than a decade ago.
My executive summary is: I believe that it would not be a burden for smaller carriers to participate in the FIO’s study. Furthermore, the smaller carriers might add a perspective on each jurisdiction that the larger carriers might not have the ability to impart.
Further, we would be pleased to share the expertise of our key analysts in your efforts to develop a data collection format that provides the FIO with the broadest sample of data from a representative number of carriers.
Thank you for this opportunity to share my thoughts. If there are questions on my perspective or the attachments, or if the FIO wants to discuss our ability to add value to this landmark analysis, I can be reached at [email protected] or on my mobile phone at 1 614 595 3516.
Very truly yours
President and Co-founder
Original text including attachment here: https://downloads.regulations.gov/TREAS-DO-2022-0021-0035/attachment_1.pdf
TARGETED NEWS SERVICE (founded 2004) features non-partisan ‘edited journalism’ news briefs and information for news organizations, public policy groups and individuals; as well as ‘gathered’ public policy information, including news releases, reports, speeches. For more information contact