Recent dry spell of hurricanes not tied to insurance rates
By Lynn Hatter
Tallahassee, FL – The commission that examines the science behind hurricane insurance premiums has approved a new model that will be used by Florida's insurance industry for next two years. The models are computer-generated estimates on damage results from hurricane winds. Florida hasn't had a major storm in the last few years but as Lynn Hatter reports, that doesn't change what consumers pay for their hurricane insurance.
The Florida Commission on Hurricane Loss Methodology's newest hurricane model won't have any effect on insurance premiums -- even though the state hasn't had a storm in the last four years. Scott Wallace is the president of Citizens Property Insurance Corporation and chairs the commission.
"A three-to-five year history has very little impact on the modeling of what's developed by the modelers simply because we look at a history that goes beyond 100 years, as far as storms and weather activities. These models are built off of long-term average events over that period of time."
The models are approved every two years by the Hurricane Loss commission which is a panel of scientists, insurance industry representatives, state officials and consumer advocates.