Once again we are warned about the dangers of building models in an area lacking proper ventilation!
Here, along the East Coast, the pricing or availability of property coverage is influenced by these flawed models and another piece of solid scientific reasoning — we are due the big storm because we have never had the big storm!
This, in spite of the historical evidence, coming to us in the form of ocean temperature readings, which suggests a very different scenario–it takes warm water to fuel these storms. Once the storms cross over the Gulf Stream, they run across cooler waters and lose their power. Yet, the fear is that we will have that one Cat 5 storm slamming into the coast between VA and MA, simply because it has never happened. Sheesh! What’s next? Fear of meteors?
Good comment. Irritates me (more so in the past, must be getting used to it) that managers said “They’re due” when there were no losses for a particular insured. My response was “OKaaaaa……when?” Never did get an answer. Guess I was just a troublemaker.
Insurance is a long term business managed by people compensated on short term results-models which increased profits were accepted without question by the industry and not accepted by consumer advocates. I’ve been working on the coastal insurance crisis in Massachusetts since February of 2004. This is excellent news – but no surprise.
Once again we are warned about the dangers of building models in an area lacking proper ventilation!
Here, along the East Coast, the pricing or availability of property coverage is influenced by these flawed models and another piece of solid scientific reasoning — we are due the big storm because we have never had the big storm!
This, in spite of the historical evidence, coming to us in the form of ocean temperature readings, which suggests a very different scenario–it takes warm water to fuel these storms. Once the storms cross over the Gulf Stream, they run across cooler waters and lose their power. Yet, the fear is that we will have that one Cat 5 storm slamming into the coast between VA and MA, simply because it has never happened. Sheesh! What’s next? Fear of meteors?
Good comment. Irritates me (more so in the past, must be getting used to it) that managers said “They’re due” when there were no losses for a particular insured. My response was “OKaaaaa……when?” Never did get an answer. Guess I was just a troublemaker.
Insurance is a long term business managed by people compensated on short term results-models which increased profits were accepted without question by the industry and not accepted by consumer advocates. I’ve been working on the coastal insurance crisis in Massachusetts since February of 2004. This is excellent news – but no surprise.