Towers Watson’s “2012 Risk and Finance Manager Survey” found that 95 percent of insurance buyers had some concern over the hardening of the P&C market, which is a result of catastrophic losses in 2011 and an upgrade in the catastrophe risk model to RMS 11.

“There are more inland locations included in catastrophe-exposed areas, which is driving up property rates because insurers price the product based on the risk model,” said Craig Nelson, SVP of Towers Watson Risk Advisory and Brokerage Division in Denver, Colorado. “They use the CAT risk model to understand how much of their customer’s portfolio is exposed to catastrophe loss and charge more for clients that own more locations in CAT-exposed area.”

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