Guidewire Optimistic About New Direction of California Insurance
“California's insurance crisis calls for collaboration between government regulators and insurers to create a sustainable insurance market – one that provides consumers protection and choice,” said Guidewire CEO
“Despite current challenges, the state of
According to HazardHub data, with an average of 8,273 wildfires per year,
In a significant development designed to address this crisis, the
The proposal also permits insurers to assess catastrophe risk using forward-looking projections supplied by risk models. This progressive approach recognizes that the current reliance on historical data is becoming increasingly outdated given climate change and urban expansion into high wildfire risk areas.
“These proposals to permit insurers to price catastrophe risk with forward-looking projections will be a game changer in improving market conditions. The current requirements that rely solely on historical data are outdated in a time when weather and natural catastrophe events are changing rapidly,” said
Traditional insurance risk assessment tools struggle to accurately identify and differentiate risk in wildfire-prone areas. Many insurers rely on these outdated technologies that look at wildfire risks based on just a few data elements – and consider all the properties in large geographical areas as having the same risk. Some territories or zones can include entire cities, zip codes, or other census-defined areas.
“The technology and data exist to examine over thirty data elements correlated with higher wildfire risk – and to map and define that risk at the exact property address level,” said Arnemann. “HazardHub provides insurers with the comprehensive data that allows them to assess and underwrite property risk profitably.”
About Guidewire HazardHub
Guidewire HazardHub is the most comprehensive set of property risk data, casualty risk data, and hazard risk scoring in the P&C insurance industry. HazardHub models complex natural and manmade phenomena to drive decisions that benefit insurers and insureds. More than 200 insurers, reinsurers, brokers, MGAs, and insurtechs use our data to underwrite faster, underwrite more accurately, and to aid and improve pricing. For more information, please visit https://www.guidewire.com/products/hazardhub.
Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. We combine digital, core, analytics, and machine learning to deliver our platform as a cloud service. More than 540 insurers in 40 countries, from new ventures to the largest and most complex in the world, run on Guidewire.
As a partner to our customers, we continually evolve to enable their success. We are proud of our unparalleled implementation track record, with more than 1,600 successful projects, supported by the largest R&D team and partner ecosystem in the industry. Our marketplace provides hundreds of applications that accelerate integration, localization, and innovation.
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Senior Public Relations Manager