Amid homeowner insurance crisis, consumer advocates and industry clash at hearing

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Consumer advocates and insurance firms clashed at a state hearing over plans to use complex computer simulations to set homeowners' premiums.

The fault lines running through California's spiraling homeowners insurance crisis were on display Tuesday at a state hearing, where consumer advocates clashed with industry firms over a plan to allow insurers to use complex computer models to set premiums — a move state officials say will attract insurers to the market.

Julia Borman, a director at Verisk, a company that builds computer models used by insurers, expressed concern that the draft proposal put forth by Lara would allow for a review by 'countless participants and create the opportunity for an infinite timeline,' while not safeguarding companies from having their models ripped off by others Michael Soller, the state Department of Insurance's deputy commissioner for communications, said Lara has publicly stated that the draft rules will...

 

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