How Insurers Game Out Disaster Risk and Drop Customers [View all]
https://www.wsj.com/finance/how-insurers-game-out-disaster-risk-and-drop-customers-0c5b9cb4
https://archive.ph/lKGwK
How Insurers Game Out Disaster Risk and Drop Customers
Companies are trying to cut their exposure, but their methods can be flawed
By Jean Eaglesham
April 27, 2024 5:30 am ET
CSAA Insurance Group refused to renew its policy this year on the home that Ronnie de Supinski owns with her husband, Bronis, in Livermore, Calif.
The reason given? Wildfire risk. The wildfire-risk score sent by CSAA? Zero.
As insurers suffer rising losses from wildfires and thunderstorms, they are using scores and models of natural perils to cherry pick which properties they insure, and set their rates.
Insurers say this helps keep home insurance available in disaster-prone areas, by allowing them to predict and manage risks. Consumers and industry analysts question how fair, accurate and reliable the tools really are.
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