{"id":797532,"date":"2025-01-02T13:19:49","date_gmt":"2025-01-02T18:19:49","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/verisk-wildfire-model-is-the-first-catastrophe-model-under-review-for-insurance-ratemaking-in-the-state-of-california\/"},"modified":"2025-01-02T13:19:49","modified_gmt":"2025-01-02T18:19:49","slug":"verisk-wildfire-model-is-the-first-catastrophe-model-under-review-for-insurance-ratemaking-in-the-state-of-california","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/verisk-wildfire-model-is-the-first-catastrophe-model-under-review-for-insurance-ratemaking-in-the-state-of-california\/","title":{"rendered":"Verisk Wildfire Model is the First Catastrophe Model Under Review for Insurance Ratemaking in the State of California"},"content":{"rendered":"

\nNewly-Announced Regulation from the California Department of Insurance Will Address Property Insurance Availability by Allowing Forward-Looking Catastrophe Models
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Jersey City, Jan. 02, 2025 (GLOBE NEWSWIRE) — In a groundbreaking step toward a more resilient and sustainable property insurance market in California, Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, announced today that it is the first modeler to request a review of its wildfire catastrophe model by the California Department of Insurance (CDI).\u00a0 <\/p>\n

This development is made possible as one part of California Insurance Commissioner Ricardo Lara\u2019s Sustainable Insurance Strategy, which includes the decision to allow catastrophe models to be used by insurance carriers as a critical tool for assessing catastrophic risk. Verisk is the first to submit a model after the regulation went into effect on January 2, 2025.<\/p>\n

Verisk\u2019s Extreme Event Solutions pioneered the catastrophe modeling business in 1987 to support the insurance industry\u2019s ability to provide resilience to communities and businesses. With its longstanding tradition of best-in-class modeling, Verisk brings decades of experience and technical expertise to help insurance companies understand and manage the complex landscape of natural disaster risks. The Verisk Wildfire Model for the United States incorporates leading knowledge of the wildfire hazard and vulnerability as well as recent trends in variables that impact the extent of wildfire risk in the Western United States, including in California, which saw more than 391,000 acres burned in wildfires in 2023 alone.\u00a0\u00a0<\/p>\n

California\u2019s property insurance market has faced unprecedented challenges as wildfire risks and claims costs continue to rise. The use of catastrophe models in California is expected to provide consumers, insurers, and regulators with enhanced insights into natural disaster risks and increased insurance availability across the state. The initiative balances transparency and innovation, helping secure California\u2019s property insurance market for the future.\u00a0<\/p>\n

Today\u2019s pioneering submission demonstrates Verisk\u2019s commitment to supporting Californians and the CDI\u2019s efforts in ensuring that California\u2019s insurance industry is adaptable and responsive to emerging challenges by enabling:\u00a0<\/p>\n