Business & Tech
New Plan In California Lets Insurers Use Computer Modeling To Justify Rate Increases
Balber runs Consumer Watchdog and is concerned the computer modeling would be unreliable and would raise insurance rates unjustifiably.
March 22, 2024
California's insurance commissioner unveiled a controversial new plan on Thursday that would let insurance companies use computer models to justify rate increases.
Find out what's happening in Los Angelesfor free with the latest updates from Patch.
It's a push to keep home insurers from leaving the state after major companies paused or restricted coverage less than a year ago. The new computer catastrophe modeling would allow insurers to predict possible wildfires and raise insurance rates based on them.
The problem with these models is they're owned by Wall Street companies who refuse to explain to us how they're getting the rates they're proposing," Executive Director Carmen Balber said.
Find out what's happening in Los Angelesfor free with the latest updates from Patch.
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