Massachusetts Attorney General Martha Coakley has sent a letter to the Massachusetts State Rating Board requesting that a hearing be held to review the hurricane models used by insurers to set rates for homeowners’ insurance.  The Attorney General claims that some insurers are using models that are untested or discredited, which do not produce accurate estimates that are appropriate for Massachusetts and is resulting in possible overcharges.  She also stated that these models are not being reviewed by the Division of Insurance and that insurers are being permitted to use “models that have been rejected in other states, such as Florida.”  Insurance Commissioner Joe Murphy responded that although he has not had an opportunity to review the Attorney General’s letter, “[Insurers’] rates are based upon storm models we will scrutinize.  This is an issue we have been looking at internally.”

To view the official press release, click here.