It’s windy when it’s wet why UK insurers may need to reassess their modelling assumptions

UK insurers use models that simulate extreme weather events to inform their pricing, manage their accumulation of risk, and decide how much capital they need to operate from both an economic and – in many cases – regulatory viewpoint. But there are two fundamental challenges that arise when it comes to modelling. The first is ensuring insurers are including in their models all the material risks they are exposed to – for instance freeze, subsidence, flood and wind risks for UK properties.
Read more...

;