Fitch Ratings is re-evaluating insurers' use of catastrophicrisk models, saying the current programs are inadequate fordeveloping a true picture of a carrier's capital requirements.

Peter Patrino, a member of Fitch's insurance group based inChicago, said: "The old methods for evaluating catastrophe risk arejust that, they have gotten a bit old. The new process and thoughtsthat Fitch will bring to the evaluation of CAT risk will look atthe entire tail of risk distribution and integrate that risk withthe insurers' overall capital needs."

The company's comments came today during a telephone pressconference to discuss Fitch's special report, "New Thinking onCatastrophic Risk and Capital Requirements."

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