though i applaud the congressman’s efforts the state will need a large staff to keep up with the changing environment daily. one that i do not believe the state can currently afford. so many different underwriting characteristics go in to each rating model i cant see this being a viable law.
You are probably right danny. I bet there are some companies squirming about this about now. They don’t want their predictive modeling, rates, algorithms out there for everyone to see.
The biggest issue is what exactly will need to be published. There is a reason actuaries make a lot of money. It is not becasue rates are determined using simple math. Even if made public, very few consumers would be able to interpret the justification for rates.
In addition, what, if anything, will be considered confidential due to being proprietary in order to maintain a competitive advantage?
Sounds like this Texas Republican is trying to reduce competition. What insurance company will want to write in TX if this gets passed? And you thought P&C rates were high now?
Just call Flo. She’ll let’em know!
though i applaud the congressman’s efforts the state will need a large staff to keep up with the changing environment daily. one that i do not believe the state can currently afford. so many different underwriting characteristics go in to each rating model i cant see this being a viable law.
You are probably right danny. I bet there are some companies squirming about this about now. They don’t want their predictive modeling, rates, algorithms out there for everyone to see.
The only problem I see is the credit model. There is already a website that compares rates and coverages for Texas insurance companies…
I thought Texas was business-friendly.
The biggest issue is what exactly will need to be published. There is a reason actuaries make a lot of money. It is not becasue rates are determined using simple math. Even if made public, very few consumers would be able to interpret the justification for rates.
In addition, what, if anything, will be considered confidential due to being proprietary in order to maintain a competitive advantage?
Sounds like this Texas Republican is trying to reduce competition. What insurance company will want to write in TX if this gets passed? And you thought P&C rates were high now?