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Old 07-02-2008, 04:02 PM
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Default CAT modeling

Drudge is carrying a link to a story about how property insurers are using modeling to predict their future liability for catastrophic events such as hurricanes. Those models are based on the same types of models so-called climatologists use to forecast global warming. Very conveniently this provides the insurers the cover they need to raise premiums. After all, global warming will cause more frequent and more violent hurricanes, they argue based on these models, and so they need to protect themselves against the losses that will result. Thank you, Al Gore, for giving insurance companies the ability to suck more money out of rate payors.
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