Analytics & Data

An overview of how catastrophe models are used in the industry.

Catastrophe models have become so ingrained in the insurance industry that a model revision can have profound effects on all aspects of the business, especially when loss results for some books of business can double.

New federal regulations related to the Dodd-Frank Act are currently being rolled out across the financial services industry, affecting not only banks but insurance companies as well. The goal of these new regulations is to increase consumer protection by increasing transparency.

Competitive challenges in the property and casualty industry will continue into 2011, and insurers will need to stay ahead of factors such as cycle management, technology, and regulatory and accounting changes to separate themselves from competitors, Ernst & Young said in a recent industry outlook.

For property and casualty insurers, projecting compliance issues that might impact the business of insurance in 2011 essentially requires a “regulatory reflection” of the past year.

We may not notice all the changes that have taken place over the last decade unless we dial the clock back to 1999 and remember what life was like then for insurance IT.