Use broader set of cat models to avoid bankruptcy “cascade”: Oxford study
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Use broader set of cat models to avoid bankruptcy “cascade”: Oxford study

Kit Heren
12 March 2021
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Aerial drone view entire Neighborhood under water near Austin , Texas
Historic Flooding in Central Texas Homes under water at Graveyard Point neighborhood community in the flood plain of Lake Travis , Aerial drone view entire Neighborhood under water near Austin , Texas | RoschetzkyIstockPhoto/Getty Images/iStockphoto

Insurance companies should use four catastrophe models to underpin their underwriting and avoid a “disastrous” wave of bankruptcies, a new Oxford University study has said.

The study urges insurance regulators to encourage more widespread use of four models, claiming that basing underwriting on a more diverse set of assumptions would increase the capital available to carriers by 50%, cut bankruptcies by 20% and halve...

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Kit Heren
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