What’s New: In Brief (August 14, 2008)

Risk Management Solutions (RMS) has launched winter and severe convective storm models for Canada and the U.S.
The winter storm models explicitly assess losses from snow, ice, freezing temperatures, and extra-tropical winds.
“Winter storms are complex weather systems that can produce various types and combinations of damage from different perils, making them extremely challenging to model,” Tom Foster, product manager at RMS, noted in the release. “Using a unique approach, we have broken new ground by analyzing the individual and combined impacts of snow, ice, freezing temperatures, and wind to provide much more accurate damage estimates.”
Severe convective storms produce damage from large hailstones, powerful straight-line wind gusts, lightning strikes and deadly tornadoes, the release says.
The severe convective storm model has been tested using weather observation data such as radar interpretation, damage surveys and industry claims information.

The Property Casualty Insurers Association of America (PCI) is cautioning policymakers to not assume that because the high cost of gas will result in fewer miles driven (and as a result, fewer insurance claims) a decrease in premiums is warranted.
“While there is solid evidence that the high price of gas has reduced the number of miles driven, it would be a mistake to assume that this means there will be lower insurance claims reporting and as a result, lower insurance premiums for consumers,” Paul Magaril, regional manager and counsel for PCI, said in a release.
He added, “While we support insurers taking a look at data regarding miles driven, there are many factors that determine what a consumer will pay for their auto insurance. As a result, it is necessary to explore in detail the trends of all of the various factors that have an impact on auto insurance premiums that consumers pay.”